US Military Disappointed With Microsoft HoloLens: Deal at Risk

Microsoft is at risk of losing a massive order from the US military for its augmented reality headset HoloLens. Apparently, the deal is on the brink as the performance of the specially modified variants for the military may not live up to expectations. Like the magazine, Business Insider reported, Microsoft could lose the huge to provide the US military with a special variant of the HoloLens AR headset. The group had awarded the contract worth up to $22 billion some time ago, but now there is a risk of failure – because the HoloLens hardware doesn’t work well enough.

Extensive testing in two months

Actually, the US military was supposed to start testing the HoloLens under real-world conditions in about two months, but because there are problems with the initial tests during the evaluation phase, the deal could rupture. There are apparently problems with reliability when used and when used in dimly lit environments. Microsoft has apparently failed to increase reliability enough to the extent hoped of lately. The military, who can currently try the devices as part of a military test phase, would be mostly negative about the product.

Apparently, there are also issues with the performance of the headset’s AR displays in poor lighting conditions. The expectations of the US military as a customer have dropped significantly, according to the company. The military variant of the HoloLens headset internally referred to as “Atlas”, is officially called the Integrated Visual Augmentation System (IVAS) and is part of the so-called “Project Delaware”. It is actually an improved version of the headset with sturdier housing.

Microsoft would pump a good $600 million into development, while the contract with the US military could potentially generate about $22 billion in revenue in ten years.