Microsoft’s U.S. Miltary AR Combat Goggle Order Cancelled By Congress

Two years ago, Microsoft scored a $22 billion U.S. defence contract to assist in developing the Integrated Visual Augmentation System (IVAS). But now Congress has blocked the Army’s attempt to buy 6,900 of the AR headsets based around the HoloLens 2.

The rejected order was worth $400 million; however, the reason behind Congress’s u-turn is that the headsets are responsible for “mission-affecting physical impairments.”

So, what has caused Congress to change its mind about this new technology? Where does this leave Microsoft? And does this technology still have a future with the military?

Here’s what we know so far about the status of Microsoft’s tactical AR goggle project. 

What Went Wrong With IVAS Testing?

Congress’s decision to cancel the army’s order is based on tests performed over three weeks in June 2022. During the tests, 70 infantry soldiers used the IVAS headsets over three 72-hour training missions. 

But the exercises didn’t go well. Over 80% of the soldiers complained of eyestrain, headaches, or nausea after wearing the headsets for less than three hours. Many of these problems were caused by sight calibration. 

Previously, the U.S. Army had ordered 10,000 units. 5,000 would be IVAS v1.0, while a later delivery of 5,000 IVAS v 1.1 was planned. 

These problems followed alleged problems with quality and concerns from the Microsoft camp about potential trial difficulties. 

The IVAS Timeline

The IVAS system streamlines the U.S. Army’s existing immersive training vision-enhancing technology in one single tool. IVAS includes high-resolution night vision, thermal imaging, head-up display, and sensors that give soldiers greater awareness. 

Additionally, the IVAS uses augmented reality coupled with machine learning to prove mixed reality tactical training. The device has been touted as the most advanced piece of military technology ever. 

Initially, Mircosoft announced that they’d been engaged to develop the IVAS in 2019 in a contract worth $480 million. This soon increased to almost $22 billion over five years, with a view to extending the project for another five years.

After the development phase, the initial order worth $373 million was accepted in March 2021. However, in December 2021, the device was declared as being “not combat ready” over worries about the heads-up display calibration and moisture protection. 

Following the V 1.1 tests, plans were in place for a 2025 v 1.2 redesign that may include low-light sensors, improved reliability, decreased power use, and software improvements. To fund the development of this new model, the Army awarded a task order of $125 million. 

Although Congress has had a change of heart over the recent order, the Army is left with 5,000 of the devices. These will be used in training, despite being just a small percentage of the potential 121,000 headsets that the $22 billion deal promised. 

Where Does This Leave Microsoft?

Despite the change of plans, Microsoft will continue working on the project. To improve the IVAS design, Microsoft will receive a further $40 million. The current spending equates to $63,768 for each set of goggles. 

The order cancellation does mean that Microsoft needs to make cutbacks. In fact, the tech giant plans to make 10,000 layoffs across its extended reality department. 

Other AR Cutbacks and Layoffs

Microsoft isn’t alone in its current AR worries. Recently, Apple has cancelled plans for AR smart glasses due to difficulties with both hardware and software. Elsewhere, Meta’s Reality Labs has laid off 11,000 employees and have shelved the Project Nazare AR smart glasses.