Microsoft's Combat Goggles Win Favor with US Army, Nearing Large-Scale Deployment

Microsoft Corp MSFT has received positive feedback on its improved combat goggles, marking a significant step forward in collaborating with the U.S. Army. 

After successfully testing the first 20 prototype IVAS 1.2 goggles in late August, soldiers have reported improvements in reliability, low-light performance, and comfort without experiencing the nausea and dizziness associated with earlier versions. 

This promising outcome has prompted the U.S. Army to award Microsoft a new contract for additional systems and to assess the company's production capabilities, with the potential to order large quantities, Bloomberg cites a U.S. Army spokesperson.

Congress rejected the U.S. Army's request for $400 million to buy up to 6,900 Microsoft combat goggles this fiscal year. Instead, lawmakers approved $40 million of those procurement funds to develop a new model of the goggles. 

The IVAS 1.2 goggles are based on Microsoft's HoloLens "mixed reality" technology and have undergone rigorous testing at Fort Drum, New York. Soldier feedback has been positive, marking a significant milestone in developing these cutting-edge devices.

The next phase involves the production of new pre-production models, which will be subjected to intense operational combat testing between April and June 2025. The success of these tests will determine the deployment of the goggles. 

The U.S. Army has ambitious plans for the IVAS 1.2 goggles, projecting a potential expenditure of up to $21.9 billion over a decade to acquire as many as 121,000 devices, along with spares and support services.

Over a decade, the Army projects spending up to $21.9 billion for as many as 121,000 devices, spares, and support services.

Price Action: MSFT shares traded higher by 1.40% at $336.41 on the last check Wednesday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.