As Apple headsets emerge, Microsoft adjusts its strategy to focus on "cloud-based" mixed reality devices

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Apple plans to launch its first AR/VR headset as early as later this year or 2023, according to According to reports, Microsoft is revising its roadmap to better compete. According to a new report from Insider, citing an internal roadmap, "Microsoft's mixed reality business is undergoing a significant technology shift."

Insider first reported last week that Microsoft had canceled the launch of its HoloLens 3 product plans to instead invest resources in other products, including devices developed in partnership with Samsung. As part of its strategic shift, Microsoft has also reportedly abandoned plans to use Windows to power its headphone products.

Today’s report explains that Microsoft plans to use cloud-based technology for its headsets made in partnership with Samsung:

Microsoft canceled the HoloLens 3 last year, according to people familiar with the matter. is the only planned future version of the mixed reality headset designed to run as a "fully standalone computer," a source with direct knowledge of the matter told Insider. Microsoft's decision to cancel that version, known internally as "Project Calypso," points the company in a new direction, including a partnership with Samsung and a potential cloud-based mixed reality device.

It's unclear what operating system the cloud version will use. Samsung devices may use Android, but future devices may require HoloLens developers to rewrite some or all of the software from scratch, rather than the company using Windows devices. .

It’s worth noting that this is a very different strategy than what Apple plans to use for its first AR/VR headset. Apple's headphones will reportedly feature an integrated chip with performance similar to the M1 Pro used in the latest MacBook Pro hardware.

However, Apple's ambitious plans have reportedly led to some development difficulties. A recent report from Bloomberg revealed that Apple initially planned to launch its new headphones as early as sometime this year, but obstacles related to overheating, camera and software technology could push the launch to 2023.

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