US Army asks if Microsoft could please make its Kill-O-Vision headsets a bit cheaper

HardwareVR HardwareUS Army asks if Microsoft could please make its Kill-O-Vision headsets a bit cheaperWhen you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

When you purchase through links on our site, we may earn an affiliate commission.Here’s how it works.

(Image credit: army)

ARMY

In 2021, Microsoft signed a$22 billion dealwith the US Army to develop the Integrated Visual Augmentation System (IVAS), based on its HoloLens headset.Not everyone was thrilledwith the idea of producing AR headsets for the US military—intended to improve “situational awareness, target engagement, and informed decision-making”—and, as usual with military procurement, there were bumps and delays along the way, but despite all of that the program continued to grind forward. Now, however, the IVAS headset is facing potentially its biggest challenge yet: They’re just too damn expensive.

ABloombergreport says the army plans to order up to 121,000 IVAS headset, depending on the outcome of testing that’s scheduled to wrap up in mid-2025. Tests are currently “going much better than the first time around,” Army acquisition chief Doug Bush said at the recent Association of the US Army conference, and “a lot of the problems [in earlier iterations] have been fixed.” But sticker shock remains: The headsets are currently projected to sell for $80,000 each, and the army wants them to come in a “substantially less” than that.

That’s an all-in price: The IVAS itself costs around $42,000 to produce, but other expenses, like Army program management and software support, also have to be factored in. Microsoft corporate vice president for mixed reality Robin Seiler said the company is now “going through the program to identify where we can reduce costs.”

“It’s a fairly complex system, so when you look at cost reduction you have to look at it from a component level, from a labor level and from your supply chain,” Seiler said.

It’s not terribly surprising that a government agency wants stuff to be cheaper than a massive corporate conglomerate would like to charge, but this isn’t the first time the IVAS has come under fire for its price tag.

In 2022, the US Department of Defense (viaTechSpot) warned the program “could result inwasting up to $21.88 billion in taxpayer funds” because it wasn’t clear whether soldiers in the field would actually use the things. Which was, and is, a fair concern:Business Insiderreported that same year that complaints about the headset at that stage of development included size, weight, loss of peripheral vision, and most notable, the glow from the display, which could apparently be seen from a very long distance, giving away the wearer’s location. (It looks cool on Sam Fisher, yes, but in the real world, as one tester put it, “the devices would have gotten us killed.") Then in 2023, US Congressblocked the Army’s planto buy 6,900 of the headsets for $400 million; instead, it awarded Microsoft another $40 million to build a better one.

Microsoft ended production of the HoloLens 2 headset earlier this month but toldUploadVRit remains “fully committed” to developing the IVAS.

The biggest gaming news, reviews and hardware deals

More about vr hardwareThis upcoming Micro-OLED VR headset has absolutely everything and weighs less than 200 grams but of course it costs nearly 4x the Quest 3Meta could take a step back from designing VR headsets and lend other companies access to its Horizon OS insteadLatestThe best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kitSee more latest►

More about vr hardware

This upcoming Micro-OLED VR headset has absolutely everything and weighs less than 200 grams but of course it costs nearly 4x the Quest 3Meta could take a step back from designing VR headsets and lend other companies access to its Horizon OS instead

Pimax Dream Air VR headset on a grey background

This upcoming Micro-OLED VR headset has absolutely everything and weighs less than 200 grams but of course it costs nearly 4x the Quest 3

A Meta Quest 3S, alongside a Quest 3 and Quest 2, on a stack of PC Gamer magazine.

Meta could take a step back from designing VR headsets and lend other companies access to its Horizon OS instead

LatestThe best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kitSee more latest►

Latest

The best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kit

Mister Fantastic mid ultimate

The best part of Marvel Rivals Season 1 is Mister Fantastic’s obnoxiously fun chest-bump attack and his ridiculously OP kit

See more latest►

Most PopularAMD accuses Intel’s Arrow Lake of being a ‘horrible’ product and implies a lack of options for consumers has caused the Ryzen 7 9800X3D shortageThis Jinx-inspired gaming PC is my favorite of CES 2025 and I’m head over heels for the hardwareHarrowing report alleges years of horrific abuse at Brandoville Studios, an Indonesian support studio that worked on Assassin’s Creed Shadows and The Last of Us RemakeTencent says it’s not a Chinese military company and is willing to sue the US Department of Defense if it isn’t removed from a blacklistAll Zenless Zone Zero 1.5 livestream codesAsus reveals three new Slash Travel Bags for carting around your ROG Ally—however, none of them are particularly fashion forwardToday’s Wordle answer for Friday, January 10We may not have a roadmap or balance patch just yet, but at least Path of Exile 2’s bugfix patch notes are funnyDeus Ex: Mankind Divided writer didn’t like the ending either: ‘Nothing is resolved’It seems like Square’s finally consistently taking the PC ports of Final Fantasy seriouslyLike a Dragon: Pirate Yakuza in Hawaii looks more like a zany RGG take on Black Flag than I dared hope

Most Popular

AMD accuses Intel’s Arrow Lake of being a ‘horrible’ product and implies a lack of options for consumers has caused the Ryzen 7 9800X3D shortage

This Jinx-inspired gaming PC is my favorite of CES 2025 and I’m head over heels for the hardware

Harrowing report alleges years of horrific abuse at Brandoville Studios, an Indonesian support studio that worked on Assassin’s Creed Shadows and The Last of Us Remake

Tencent says it’s not a Chinese military company and is willing to sue the US Department of Defense if it isn’t removed from a blacklist

All Zenless Zone Zero 1.5 livestream codes

Asus reveals three new Slash Travel Bags for carting around your ROG Ally—however, none of them are particularly fashion forward

Today’s Wordle answer for Friday, January 10

We may not have a roadmap or balance patch just yet, but at least Path of Exile 2’s bugfix patch notes are funny

Deus Ex: Mankind Divided writer didn’t like the ending either: ‘Nothing is resolved’

It seems like Square’s finally consistently taking the PC ports of Final Fantasy seriously

Like a Dragon: Pirate Yakuza in Hawaii looks more like a zany RGG take on Black Flag than I dared hope

HARDWARE BUYING GUIDESLATEST GAME REVIEWS1Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads2Best graphics card for laptops: the mobile GPUs I’d want in my next gaming laptop3Best mini PCs in 2025: The compact computers I love the most4Best 14-inch gaming laptop: The top compact gaming laptops I’ve held in these hands5Best Mini-ITX motherboards in 2025: My pick from all the mini mobo marvels I’ve tested1Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits2Shiren the Wanderer: The Mystery Dungeon of Serpentcoil Island review—like juggling chainsaws on horseback3WD Black SN850X 8 TB NVMe SSD review4Ikea Utespelare desk review5Asus ROG Harpe Ace Mini wireless mouse review

HARDWARE BUYING GUIDESLATEST GAME REVIEWS

1Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads

A bunch of the best Steam Deck accessories on a blue background.

1Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads

Best Steam Deck accessories in Australia for 2025: Our favorite docks, powerbanks and gamepads

2Best graphics card for laptops: the mobile GPUs I’d want in my next gaming laptop

Best graphics card for laptops: the mobile GPUs I’d want in my next gaming laptop

3Best mini PCs in 2025: The compact computers I love the most

Best mini PCs in 2025: The compact computers I love the most

4Best 14-inch gaming laptop: The top compact gaming laptops I’ve held in these hands

Best 14-inch gaming laptop: The top compact gaming laptops I’ve held in these hands

5Best Mini-ITX motherboards in 2025: My pick from all the mini mobo marvels I’ve tested

Best Mini-ITX motherboards in 2025: My pick from all the mini mobo marvels I’ve tested

1Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits

Thank Goodness You’re Here review

1Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits

Thank Goodness You’re Here! review: An anarchic treasure trove of jokes and skits

2Shiren the Wanderer: The Mystery Dungeon of Serpentcoil Island review—like juggling chainsaws on horseback

Shiren the Wanderer: The Mystery Dungeon of Serpentcoil Island review—like juggling chainsaws on horseback

3WD Black SN850X 8 TB NVMe SSD review

WD Black SN850X 8 TB NVMe SSD review

4Ikea Utespelare desk review

Ikea Utespelare desk review

5Asus ROG Harpe Ace Mini wireless mouse review

Asus ROG Harpe Ace Mini wireless mouse review

The biggest gaming news, reviews and hardware deals#

The biggest gaming news, reviews and hardware deals