Microsoft has lost at least $5 billion on Hololens — report

Microsoft recently announced that production of the Hololens 2 has ceased and that support will end on Dec. 31, 2027. The move is a consequence of weak sales figures and follows a 2022 decision not to proceed with plans for a Hololens 3.

According to Business Insider, Microsoft has lost at least $5 billion on Hololens since the launch of the first model in 2016. The idea was that Microsoft would get its investment back via a cooperation agreement with the US Army, but it’s unclear that will turn out to be the case.

Microsoft’s withdrawal from the market for augmented and virtual reality hardware leaves competitors such as Apple and Meta with a less crowded field on which to compete.