What Does the Future Hold for Microsoft Extended Reality?
Microsoft has always been quick to invest in innovative new technologies. It introduced the Windows Mixed Reality platform in 2017, helping various PC makers create a range of consumer-ready XR headsets.
Even earlier, in 2016, Microsoft introduced the world to arguably the first enterprise-grade mixed reality headset: the HoloLens. This was quickly replaced by the HoloLens 2. That device gained popularity among businesses but failed to connect with the consumer market.
Unfortunately, since then, Microsoft has distanced itself from the XR space. It’s cancelled the HoloLens, ended support for Windows Mixed Reality, and seems, on the surface, to be putting its immersive dreams to rest. But is Microsoft’s XR journey really over?
The quick answer is probably not. The HoloLens 2 might not make a comeback, but based on recent rumors, updates, and news, Microsoft’s not out of the XR race yet.
Microsoft XR Software: The Death of Windows Mixed Reality
Let’s start by looking at Microsoft’s approach to XR software development. When Microsoft launched Windows Mixed Reality in 2017, it wanted to take advantage of the rapidly growing PC VR market, which was previously dominated by Oculus and HTC.
Partnering with manufacturers like Acer, Dell, Lenovo, Samsung, and HP, the company fuelled the rise of affordable headsets. All the way up until 2020, when the HP Reverb G2 was released, Microsoft was still making waves.
WMR headsets were among the first to introduce the world to inside-out tracking (now standard in most devices). However, they also had many issues. The controllers were pretty basic, and Microsoft didn’t make much effort to actually draw VR developers to its platform.
This meant the Windows Mixed Reality app store stayed relatively barren compared to the libraries offered by Meta and Steam. Gradually, user adoption diminished to practically zero. Finally, in December 2023, Microsoft quietly revealed that WMR would be removed from Windows 11.
It did note that the depreciation didn’t affect the HoloLens headsets, but as of Windows 11’s 2024 update, all previous devices using WMR have essentially been “bricked.” Of course, people who still have these devices always have the option to not update their headsets. However, even if you don’t, you’ll only be able to use SteamVR apps through November 2026.
After that, WMR headsets will not receive any security updates, bug fixes, technical support, or content updates.
Software Partnerships: A New Era for Windows Mixed Reality
Based on the disappearance of the Windows Mixed Reality platform, it’d be easy to assume that Microsoft is giving up on XR software. However, plenty of evidence shows that’s not the case. It seems like Microsoft is doubling down on its efforts to become a “software provider” for other XR vendors – it’s just taking a different path.
Aside from partnering with companies like Unity on software development solutions, Microsoft joined forces with Meta in 2023 to create an “Xbox Cloud Gaming” system for Quest devices. Then, in 2024, at the Ignite conference, the giant launched a new mixed reality version of its Windows portfolio for Meta Quest 3, and Quest 3S headsets.
While Meta users could access Windows apps through Meta Airlink, Horizon workrooms, and third-party apps in the past, the update will deliver a smoother experience. Users can look down at their keyboard (according to Meta) and immediately pair their headset to their computer.
Notably, while the Quest 3 headsets won’t actually “run” Windows natively, they will allow users to stream content directly from their PC or a virtual PC and interact with apps naturally. For instance, you can tap into Microsoft Teams, Word, and Excel through your headset.
This could potentially make the Quest 3 a more powerful device for enterprise users and ensure Microsoft maintains a valuable position in the XR software market.
Microsoft’s Continued Presence in the Software Market
It’s not just Meta that Microsoft is working with either. The company entered a long-term partnership with RealWear recently, to distribute Power Apps to the XR vendor’s lineup of smart glasses. Plus, at Ignite 2024, the company said that its Windows solution would be rolling out to Meta Quest 3 and Quest 3S headsets “first”, indicating support for other devices may be yet to come.
On top of that, it’s worth noting that Microsoft is still developing XR software. Microsoft Mesh, for instance, is still evolving, giving companies access to an innovative platform for immersive collaboration through Microsoft Teams.
Updates to Microsoft Mesh were announced at the 2024 Ignite event, so it seems likely that Microsoft won’t be sunsetting this solution soon. This tells us that Microsoft still wants to play a part in the XR space from a software perspective – even if it’s no longer interested in the Windows Mixed Reality platform.
Microsoft XR Hardware: The End of the HoloLens
So, we know that the end of the Windows Mixed Reality platform doesn’t mean the end of Microsoft’s XR software dreams – but what is the company doing with hardware? Well, we know that after several years of virtual silence on the HoloLens front, these headsets are being discontinued.
The first-generation HoloLens headsets have already received their final updates, but the HoloLens 2 headsets will still receive security updates and support until December 2027. Notably, that doesn’t mean these headsets will still get major updates.
Microsoft recently released its final “major feature update” for the HoloLens 2. This introduces new features, like the WinGet integration for access to Microsoft Store apps, now that Windows Mixed Reality is dead. It also added a new feature (OneDrive PWA) for upgraded cloud-sharing capabilities for users. Going forward, though, HoloLens 2 headsets won’t be available to most users.
Microsoft has, however, said that it will continue to provide HoloLens technology to the US army, as part of its Integrated Visual Augmented System strategy. However, no actual “new” HoloLens headsets will be developed.
This decision from Microsoft isn’t shocking. After all, the HoloLens headsets didn’t earn as much adoption as solutions like the Meta Quest, particularly among consumers. They were pretty expensive, with a $3,000+ price tag – targeted at enterprise users. However, many enterprise customers in the healthcare, manufacturing, and education companies did love the headsets.
They were some of the first mixed reality headsets to show the world what extended reality devices could do for the enterprise.
Could the HoloLens 2 Still Make a Comeback?
If you’re hoping for a sudden return of the HoloLens 2, I wouldn’t hold your breath. It’s unlikely Microsoft will “revive” this headset in the future. However, rumors suggest a new type of Microsoft Mixed Reality device might arrive in the future.
According to a Korean news report, Microsoft apparently struck a deal with Samsung in 2024, asking the manufacturer to produce hundreds of thousands of mini OLED panels that could potentially power a new line of MR headsets. The partnership is still in its early stages, and mass production isn’t set to start until 2026.
However, rumors suggest Microsoft could be working on a competitor to the Apple Vision Pro. The company could create a new “spatial computing” device focused on the enterprise landscape. This headset would likely feature a new Windows Mixed Reality computing platform or a custom-made cloud streaming solution.
It is difficult to know what the headset might look like or what it could do. We do know Microsoft has its own patent for something similar to the Eyesight-style outer display on the Vision Pro. However, I’m personally hoping that Microsoft doesn’t bother copying this feature. Eyesight seems the least valuable of all the things that Microsoft could choose to copy from the Vision Pro.
From HoloLens to Windows Mixed Reality, and Beyond?
So, what’s next? It’s all still up in the air. Microsoft has had some success in the XR space, but the death of the HoloLens and Windows Mixed Reality left the company in rocky waters.
On a broad scale, it seems likely that Microsoft will continue to focus on XR software in some regard. As mentioned above, Microsoft Mesh isn’t going anywhere. Plus, Microsoft seems keen to partner with vendors on Windows mixed reality software solutions.
From a hardware perspective, things are even more uncertain. It doesn’t seem like the HoloLens 2 will make a triumphant return anytime soon.
However, there’s always a chance that Microsoft could create an entirely new line of XR headsets. If it does, it will likely continue to focus on the enterprise market, just like it did with the HoloLens. We can also expect these headsets to be pretty premium in quality, similar to the Apple Vision Pro. Even if the rumors about Microsoft’s partnership with Samsung (for OLED displays) are true, it will probably be a long time before we see a new device.
As mentioned above, mass production won’t start until 2026, and Microsoft seems to have its plate full of other projects. Plus, if Samsung is working on its own AR glasses and XR headsets, Microsoft’s project might be pushed back.
Nothing is certain in Microsoft’s XR future. But watch this space. We’ll keep you posted on any new rumors or leaks as they emerge.
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