# Microsoft Exits the XR Headset Sector by Halting HoloLens 2 Production
In an unexpected development, Microsoft has revealed that it will cease production of its HoloLens 2 mixed reality headset, signifying a notable shift in its strategy regarding the extended reality (XR) marketplace. This choice arises as leading technology firms like Apple and Meta persist in their significant investments in their own mixed reality gadgets, prompting inquiries about the trajectory of XR technology and its integration across different industries.
## The Conclusion of HoloLens 2
In a communication to UploadVR, Microsoft verified that the HoloLens 2 will no longer be manufactured, though current partners and clients can still acquire the device until available inventory runs out. The organization has committed to delivering software updates to tackle key security vulnerabilities and bugs until 2027, after which support for HoloLens 2 will conclude entirely. Meanwhile, the original HoloLens, launched in 2016, will discontinue support even earlier, with updates wrapping up later this year.
The HoloLens 2 came with a price tag of $3,500, positioning it directly against Apple’s Vision Pro. Nevertheless, while Apple advertises the Vision Pro as a multifunctional device for a wide range of users, the HoloLens targeted mainly business clients. This restricted aim, alongside its high cost, contributed to its underwhelming sales outcomes.
## Market Trends and Future Outlook
Although there have been rumors regarding Microsoft’s potential development of a new headset to rival the Apple Vision Pro, specifics are lacking, and there appear to be no signs of a forthcoming launch. Instead, Microsoft has redirected its attention to collaborating with Meta, aiming to incorporate its applications and services into Meta’s Quest headsets.
The move to withdraw from the mixed reality headset sector implies that Microsoft might be reevaluating the practicality of XR devices. Analysts have highlighted that the interest in such products may not be as high as previously thought. For example, while Apple has not revealed explicit sales numbers for the Vision Pro, estimates suggest that demand has not met expectations, especially since the device is only accessible in a limited number of regions, including the U.S., Canada, and the U.K.
In contrast, Meta has been focused on creating more budget-friendly headsets designed for gaming and media use, signaling a strategic shift towards engaging a wider consumer base in the XR arena.
## Final Thoughts
Microsoft’s decision to discontinue the HoloLens 2 represents a crucial moment in the XR ecosystem, emphasizing the obstacles and ambiguities that surround the adoption of mixed reality technology. As key players such as Apple and Meta continue to innovate and extend the limits of XR, it remains uncertain whether consumers will ultimately embrace these devices over time. The future of mixed reality may hinge on the capability of companies to develop enticing, accessible products that resonate with a broader audience.
