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TEXXR

Chronicles

The story behind the story

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Microsoft has laid off the entire teams behind the virtual reality platform AltspaceVR, which will shut down in March, and the Mixed Reality Tool Kit framework

HoloLens, Virtual Reality, and Mixed Reality are all but dead at Microsoft.  —  What you need to know

Windows Central Jez Corden

Context & Ripple Effects

Microsoft’s closure of AltspaceVR ends a social-VR service it acquired after the platform’s earlier financial distress, while the Mixed Reality Tool Kit layoffs remove the team behind a developer framework. The two moves pair a consumer-service exit with a cut to supporting tooling.

Later coverage shows the retreat broadening: Microsoft shut its Industrial Metaverse Core team, then moved to deprecate Windows Mixed Reality and ultimately removed Minecraft’s VR and MR support.

First-order effects

  • AltspaceVR users lose the service when Microsoft closes it in March, and the AltspaceVR and Mixed Reality Tool Kit teams lose their roles.
  • Developers using the Mixed Reality Tool Kit lose its dedicated Microsoft team, weakening the framework’s position as a supported route into Microsoft’s mixed-reality ecosystem.

Second-order effects

  • HoloLens and Windows mixed-reality developers must place less weight on Microsoft-maintained social-VR and tooling layers, as the company’s support footprint contracts.
  • The cuts set up the later withdrawal of Windows Mixed Reality and Minecraft VR/MR support, concentrating the impact on headset owners and developers relying on Microsoft platform integrations.

Third-order effects

  • Microsoft’s sequence of service, team, framework, platform, and game-support withdrawals points to a sustained reduction in its mixed-reality software stack rather than an isolated product shutdown.
  • As Microsoft removes layers of its VR/MR ecosystem, developers’ ability to build on Microsoft-specific components becomes less durable, shifting the ecosystem away from a Microsoft-led platform model.

The trend: Microsoft is unwinding its mixed-reality stack across social services, developer tooling, platform support, and first-party game integrations.

Discussion

  • @carnage4life Dare Obasanjo on x
    Microsoft looks to be opting out of the Metaverse hype. It shut down AltspaceVR, a virtual world product it acquired in 2017, and disbanded a team working on an AR SDK for HoloLens. HoloLens was already struggling as US military contract is in shambles. https://www.windowscentral…
  • @jgarzik Ser Jeff Garzik on x
    As expected. Meta will follow eventually. Humans will not spend significant time in VR until UI/UX/IO moves beyond clunky headsets. 🤔 The real metaverse happens when we can jack in, and not before. 🤔 https://twitter.com/...
  • @scobleizer Robert Scoble on x
    Microsoft's HoloLens is in an honored space in my home. Sad week as stories end. https://twitter.com/...
  • @mytechmusings Prakash Sangam on x
    This is not good news for #AR #VR #XR #MR & #Metaverse https://www.msn.com/... IMO, of all things #HoloLens & #Enterprise has/had the greatest opportunity. With this, it seems even that is waning? @Microsoft $MSFT @JezCorden @windowscentral
  • @daniel_rubino Daniel Rubino on x
    And 🙋‍♂️ AltspaceVR. AR/VR is so weird. It's something we all think we want, yet only a few are actually using it (outside of gaming, a few industries, and some early adopters/enthusiasts). I dunno. I'm just not convinced this will be a viable form of computing. https://twitter.c…
  • @kentbye @kentbye on x
    Sad to see Microsoft sunsetting @AltspaceVR. https://altvr.com/sunset/ They acquired it in a fire sale, but never quit gave it the development support or corporate attention it deserved. They're going to “shift our focus to support immersive experiences powered by Microsoft Mesh.…
  • @jezcorden Jez on x
    If you were hoping Microsoft may one day bring VR to Xbox ... if there was little chance before, there's zero chance now. https://twitter.com/...