Source: Microsoft
What you need to know
- In March 2021, Microsoft announced it'd secured a deal to produce HoloLens-esque augmented reality headsets for the U.S. Army.
- Since then, the project has seen hurdles and obstacles.
- Now, according to a new report, Microsoft's $22 billion contract could be in jeopardy.
In March 2021, Microsoft announced it'd secured a contract to produce augmented reality headsets for the U.S. Army. The deal was valued at approximately $22 billion.
Since then, a lot has changed. The Integrated Audio Visual System (IVAS) project (the codename for the military-attuned HoloLens variant being developed) has seen delays, and the division within Microsoft responsible for the device is reportedly not in a good place, what with HoloLens 3 being canceled and teams unsure of their company's overall augmented reality strategy. All this has been happening against a backdrop of augmented reality experts hopping ship from Microsoft to Meta and other competitors, no less.
Now, in a new Insider report, it's detailed that delays were just the tip of the iceberg. Microsoft's IVAS ambitions apparently aren't going well, with some people "close to the project" fearing that the Army will ditch the deal altogether due to its current state.
The report indicates that Microsoft expects negative feedback on its submissions to the Army, knowing its IVAS units aren't where they need to be to please the customer. Congress also recently cut the contract's procurement funding, putting almost half of it "on hold," further impacting the stability of an already troubled deal. The amount left available to Microsoft, $405 million, is not enough for the company to recover its costs on what's being produced.
IVAS is due for field testing in May, so a negative outlook ahead of smaller testing events is less than ideal.
At the end of the report, it's noted that Alex Kipman, the creator of HoloLens, hasn't been happy with Insider's articles exposing internal dynamics at Microsoft, even though he publicly said "don't believe what you read on the internet" in response to those very same articles.

How does the new XPS 13 Plus compare to the Lenovo ThinkBook 13x (Gen 2)?
Dell's new XPS 13 Plus is finally here, with Lenovo's new ThinkBook 13x (Gen 2) still coming soon. They're both 13-inch devices starting at around the same price; how do they compare otherwise?

Intel beta driver mentions upcoming Arc desktop GPUs
A recent beta driver from Intel mentions a handful of Arc desktop GPUs from the company. Support the new graphics may be an indication that the GPUs are close to shipping.

Microsoft may soon let you create your own dynamic themes for Xbox and PC
A new app called "Xbox Dynamic Themes Editor" has appeared, thanks to a reliable Microsoft leakster. Here's what it looks like.

Grab one of these pre-built PCs if you want to run Oculus Link with Quest 2
The Oculus Quest 2 is a standalone VR headset, but thanks to Oculus Link you can attach it to a PC for a more Rift-like experience. These pre-built PCs can handle the work.