It was recently revealed that Microsoft will be laying off some employees who work on mixed reality, specifically impacting the department responsible for the HoloLens 2 augmented reality headset. This news comes following a previous round of layoffs that affected 10,000 employees, including some in mixed reality. Despite these reductions, Microsoft intends to continue selling the HoloLens 2 device.
Microsoft has faced challenges with the HoloLens since its launch in 2015, with the U.S. Defense Department being one of the few entities to contract the company for a modified version known as the Integrated Visual Augmentation System. However, reports of users experiencing nausea and other issues raised concerns. Even with the promise of an updated model, Microsoft has struggled to achieve widespread success in the augmented reality market.
In recent years, Microsoft has shifted its focus towards artificial intelligence, investing heavily in commercializing AI technology. The deployment of Nvidia graphics processing units, as well as collaboration with OpenAI for advanced AI capabilities in Microsoft 365 applications, showcases the company’s dedication to AI innovation. These developments have led to the integration of AI features that can assist in various tasks such as writing memos, creating presentations, and summarizing meetings.
Despite the initial hype surrounding augmented reality and virtual reality technologies, Microsoft made the decision to reduce investment in this area by deprecating Windows Mixed Reality. This move signaled a shift away from immersive experiences that block out the physical world. While the HoloLens 2 headset will continue to be sold and supported, there is no indication of a new model being released, with reports suggesting that a third version has been canceled.
Apple’s entry into the augmented reality space with the Vision Pro headset in January further intensifies competition for Microsoft. However, Microsoft remains committed to supporting innovative features like Mesh, which enables three-dimensional Teams video calls for users in headsets. The company’s decision to restructure its mixed reality organization reflects a strategic realignment towards cutting-edge technology offerings while navigating the evolving landscape of AR and VR markets.
Microsoft’s layoffs in the mixed reality department underscore the company’s ongoing efforts to streamline operations and focus on core areas of growth. While challenges persist in the augmented reality space, Microsoft’s commitment to technological advancement through AI and immersive experiences signals a continued push towards innovation in the evolving landscape of mixed reality technologies.
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