Today I’ll break down more news concerning Microsoft’s VR ambitions, cancelled projects, new integrations and what this all means for the possibility of VR on Xbox. If you’d rather watch the report rather than reading it check out the video on my YouTube channel.
Holo Lens 3 cancelled
It would appear from reports across the internet that Microsoft has cancelled further development of the Holo Lens product range except for those devices and services currently being developed for the US army. As I reported in my last post a large number of Microsoft employees have recently jumped ship to Facebook / Meta to work on their AR / VR products. It would seem the cancellation of an updated Holo Lens product, Codenamed Calypso, and a lack of direction in this part of the Microsoft organisation, is the reason many engineers and designers have jumped ship to Meta.
A quote from an insider stated
“In no uncertain terms, Calypso was cancelled,” “All of the people who were working on it have been distributed to other programs or have left the company. Microsoft might take the HoloLens 2 and put lipstick on a pig for another release” but it is not Calypso.
It would appear that future consumer focussed efforts have been moved to a collaboration between Microsoft and Samsung codenamed Project Bondi
https://www.businessinsider.com/microsoft-hololens-3-metaverse-mixed-reality-strategy-confusion-rivalries-2022-2?r=US&IR=T
Project Bondi
What do we know about Project Bondi so far? Right now, there are a few details but the first is that this is a collaboration between Samsung and Microsoft. If this seems like a strange pairing it shouldn’t as Samsung and Microsoft have a long-term partnership in the mobile space, with Office apps and services coming pre-installed on Samsung phones, and the YourPhone app in Windows working best with Samsung Galaxy phones.
Samsung ended their own cloud storage option for phone users with Microsoft’s OneDrive being touted as the preferred destination for user’s files.
Project Bondi is described as
https://www.businessinsider.com/microsoft-hololens-3-metaverse-mixed-reality-strategy-confusion-rivalries-2022-2?r=US&IR=T
“intended essentially as a set of screens in a headset with a Samsung phone in your pocket operating as a computer, similar to the way an Apple version of a mixed reality headset is rumoured to work”
This aligns with the news we covered in the previous post regarding the partnership between Qualcomm and Microsoft to develop chips for lightweight glasses
“We’re announcing that we’re developing a custom augmented reality Snapdragon chip for next-generation, power-efficient, very lightweight AR glasses for the Microsoft ecosystem,”
Qualcomm CEO
The description of very light weight glasses certainly aligns with the Project Bondi announcement that it will require a Samsung phone in your pocket. This moves some the processing power and battery to a device you already own and will allow the glasses component to remain light weight.
If these announcements are indeed aligned, then we can surmise that:
Samsung design the hardware including display and sensors.
Qualcomm design the chips
And to round out the package Microsoft brings its operating system, cloud, and AI expertise. Although whether any such device runs on a Windows variant or Android remains to be seen.
Where is Xbox VR headed?
Previous comments from Phil Spencer make me think we are more likely to see a marketplace for headsets rather than Xbox leading the charge by developing its own hardware.
“I think that when we think about immersion, we think about mixed reality, virtual reality, I’ll even take it to ‘metaverse’, which seems to be the buzzword of the day now. We’re big believers in that software platform and the devices that will enable that. Absolutely. [But] we’re focused a lot more on the software side of that right now. When I think about immersive worlds and I think about the connection of a player and community, that’s something that’s very high on our investment list.”
Phil Spencer speaking to the WSJ in 2021
Spencer also acknowledged the work being done in the VR space.
Phil Spencer speaking to the WSJ in 2021
“I think that the hardware innovation that’s happening is great and it’s an important enabler, [but] right now I’m deciding to stay more in the software side of that enablement. I believe it will scale better in the long run. And you know, I applaud what Sony are doing, I applaud what Oculus is doing, what Valve has done. I mean, there’s a lot of good players out there that have done some amazing VR work.
I believe that once the market is there, we will see an Xbox branded headset to either set the bar higher for the market’s hardware partners, like the company has continued to do with its Surface line-up of tablets and laptops or compete at a lower price point like they have with the Xbox wireless headsets. Phil Spencer clearly believes in the direction of travel for Xbox and that is in game streaming and Xbox Game pass as enablers for profitability and allowing Microsoft to meet their customers on whichever platform they happen to be using, be that Xbox, Windows, PlayStation or mobile.
Also, this week were two more minor news items which further point towards Microsoft’s increasing interest in VR and the Metaverse.
AR / VR headsets predicted to increase sales by 36%
There are numerous reports this week of predictions for increased headset sales with growth expected to increase 36% this year and further increase in 2023. This is good news for anyone interested in Virtual Reality on the Xbox because as the market grows the reasons for Microsoft to continue to ignore this segment become smaller and smaller.
“AR/VR headset shipments are projected to reach 14.19 million units in 2022 from 9.86 million units last year on the back of the metaverse buzz. According to research firm Trendforce, the 36% projected growth can be chalked up to the price drop of Meta’s Oculus Quest 2 and an increase in remote interactivity due to the pandemic. “
https://analyticsindiamag.com/metaverse-drives-ar-vr-headset-shipments-to-hit-14-mn-units-in-2022/
How much stock we can actually put in these reports is hard to say but it is interesting to see this news aligning with so much other movement in the VR and MetaVerse space.
Alt Space VR integration
Microsoft have announced that they are integrating Microsoft accounts into the Alt Space VR. They are positioning this integration as one based on security, especially for parents concerned about what their children are doing online. It also shows Microsoft further aligning all its software and services to AR / VR and the Metaverse.
Just as we do for Xbox, Windows, and other Microsoft services, we will integrate MSA accounts with Microsoft Family Safety, allowing parents to approve or limit access to AltspaceVR for 13+ family members who download AltspaceVR from the Microsoft Store. We will communicate the exact timing and how parents can implement these changes in the months ahead.
Alex Kipman – Microsoft – 2022
The next few months will certainly be interesting if you have even a slight interest in gaming, VR or the Metaverse. At the very least we can all watch with a certain amount of satisfaction as Facebook / Meta’s stock price continues its fall from grace.
Twice the bits 
Leave a comment