HoloLens AR: A $480 Million Contract
Microsoft (NASDAQ: MSFT) just locked in a contract with the U.S. Army for $480 million. And the contract could foreshadow a very bright future for extended reality (XR).
This contract was the result of a bidding war between Microsoft and Magic Leap, but Microsoft won with its mixed reality headset, the HoloLens.
The terms of the contract include the development of the AR system which soldiers will access through their HoloLens equipment, as well as 2500 prototypes. And if the development effort goes well, the military may buy an additional 100,000+ units. If that’s at the current commercial rate of $5,000, the order would be an additional $500 million to Microsoft.
It’s an exciting time for mixed and extended realty. So many technologies were discovered during military pursuits— GPS, microwaves, drones, etc. And now Microsoft is being funded to slim down the HoloLens design and make it as comfortable and unobtrusive as possible.
After refining the military-grade design, Microsoft could use those takeaways to release a headset that could explode in the consumer market.
The consumer version probably wouldn’t include the laser rangefinder (for calculating the trajectory of ballistic missiles), but at least the cameras and 3D display!
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