Microsoft has officially handed over its $22 billion IVAS contract to Anduril, marking the end of its involvement in the VR hardware space. The project, named Integrated Visual Augmentation System (IVAS), will now be pursued by Anduril in collaboration with the Department of Defense (DoD). The move signifies the conclusion of Microsoft’s HoloLens project, with the company ceasing production and sales of HoloLens devices. Despite the halt, the US Army remains committed to the development of HoloLens IVAS devices, with Anduril set to take over the program under the leadership of Palmer Luckey. Luckey expressed excitement for the future possibilities, hinting at innovative features to come. The original HoloLens project, launched in 2016, aimed to revolutionize augmented and virtual reality experiences, but faced challenges in reception and sales. Microsoft’s pivot away from AR signals a shift in the mixed reality landscape, while the company continues to support existing HoloLens 2 users with updates until 2027.