Microsoft Unlikely To Win Further US Army Orders For Combat Goggles Pending Deficiencies; Congress Approves $40M For New Model

Congress rejected the U.S. Army’s request for $400 million to buy up to 6,900 Microsoft Corp MSFT combat goggles this fiscal year.
The refusal in the $1.75 trillion government funding bill reflects concern over field tests of the goggles, adapted from Microsoft’s HoloLens headsets, Bloomberg reports.
The tests disclosed “mission-affecting physical impairments,” including headaches, eyestrain, and nausea.
Instead, lawmakers approved $40 million of those procurement funds to develop a new model of the goggles, the report adds.
Over a decade, the Army projects spending up to $21.9 billion for as many as 121,000 devices, spares, and support services.
The Army has already ordered the first 5,000 goggles.
In December, the Army awarded a $125 million “task order" for the new model, labeled version 1.2.
The task order will provide improvements to address physiological impacts identified during testing, including software improvements for better reliability and reduced power demand.
More than 80% of U.S. soldiers experienced discomfort after less than three hours of using the goggles. The system also faced too many failures of essential functions.
Price Action: MSFT shares traded higher by 1.14% at $238.45 on the last check Thursday.