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Chronicles

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Report: Microsoft scrapped plans for a HoloLens 3 in 2021, shifting instead to a mixed reality device with Samsung and leaving the HoloLens team “inflamed”

Microsoft turned heads when it first introduced HoloLens, and it even launched a second generation of the mixed reality headset … Source: Insider .

OnMSFT.com Arif Bacchus

Context & Ripple Effects

Microsoft had already reset its headset plans in 2017, when reports said it cancelled a planned second-version roadmap in favor of more ambitious hardware. The reported move away from a third HoloLens therefore extends a pattern of product-roadmap discontinuity rather than a single isolated cancellation.

The partnership framing matters because it shifts the next mixed-reality effort from a wholly Microsoft-led HoloLens successor to a shared effort with Samsung. Later coverage of deep HoloLens hardware-team cuts and HoloLens 2's discontinuation without a replacement makes this reported pivot a key point in the product line's retreat.

First-order effects

  • Microsoft redirects the next headset effort away from HoloLens 3 and toward a mixed-reality device developed with Samsung.
  • The HoloLens team loses a clear product destination, with the report describing internal conflict over the change, while Samsung gains a role in Microsoft's next device plan.

Second-order effects

  • Microsoft's mixed-reality roadmap becomes more dependent on alignment with Samsung, rather than on a self-contained HoloLens hardware cycle.
  • Repeated roadmap changes weaken the continuity of the HoloLens hardware organization, a pressure later reflected in reported cuts to that team.

Third-order effects

  • If Microsoft continues to prioritize partner-built devices over a HoloLens successor, mixed reality shifts from a branded hardware bet to a platform-and-partnership strategy.
  • The sequence from roadmap resets to cuts and eventual maintenance-only support points to a narrower long-term role for Microsoft-owned mixed-reality hardware.

The trend: Microsoft's mixed-reality strategy is moving from repeated standalone HoloLens bets toward partner-led hardware and reduced internal device commitment.

Discussion

  • @jayshams Jacob Shamsian on x
    My colleagues at Insider have been doing great work on how the shift to the Metaverse has been roiling tech companies. Rank-and-file employees at Microsoft and Facebook don't understand why the industry is pivoting, and it's a mess. https://www.businessinsider.com/ ...
  • @julie188 Julie Bort on x
    Microsoft should have owned the Metaverse just like it should have owned mobile. Instead, its unit is a mess. Another scoop from @ashannstew https://www.businessinsider.com/ ...
  • @andrew_lusk Andrew Lusk on x
    This article really flops for breathlessly repeating that “the” “metaverse” is A Thing, when instead, part of the cause for the mess here is that nobody - including the MS spokesperson that BI spoke to - could tell you what it is if pressed. https://www.businessinsider.com/ ...
  • @tasslehoff @tasslehoff on x
    Woah Business Insider, why didn't you mention MSFT fixed the waveguide FOV the same time the Hololens 3 was reportedly put on hold? No mention of Qualcomm's partnership too with MSFT to develop custom silicon for these headsets? https://www.businessinsider.com/ ... https://twitte…
  • @ashannstew Ashley Stewart on x
    Microsoft's mixed reality unit, responsible for its metaverse aspirations, is facing internal divisions, strategic uncertainty and lower employee morale. Sources say recent HoloLens 3 plans were scrapped, and a Samsung partnership is adding to uncertainty. https://www.businessins…