AR Industry

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Leaked Xbox Documents Show XR Interest But No Immediate Plans

Leaked documents relating to Microsoft’s business strategy for Xbox show the company eyeing XR technology but continuing to keep it at arm’s length.

While Microsoft has previously taken considerable steps into XR with both HoloLens and the Windows Mixed Reality platform on PC, the company’s flagship gaming division, Xbox, has notably not joined the fray.

Over the years Xbox leadership has repeatedly pushed back on XR interest, saying the tech doesn’t yet have a large enough audience to warrant investment. And while it doesn’t look like we should expect anything relating to XR from Xbox in the near future, the company is at least continuing to eye the tech as a potential opportunity.

Road to VR reviewed the entirety of a trove of documents that leaked this week in connection with an ongoing Federal Trade Commission v. Microsoft court case. The documents, which reveal a significant portion of Microsoft’s long-term plans for the Xbox brand, show the company is still skeptical of XR but not discounting it in the long run.

In a mid-2022 ‘Gaming Strategy Review’ document, Xbox pointed to “AR / VR” as one of a handful of “opportunities” the company was mulling as part of its “early thoughts on [the] next generation of gaming.” In the same section the company pointed to tech like cloud gaming and ML & AI as potential areas of strategic focus.

In another section of the same document the company highlighted Windows Mixed Reality, OpenXR, WebVR, and HoloLens among many platforms and services that Xbox can leverage to build its “next gen platform for immersive apps and games.” Given the context of the document, however, it doesn’t seem that Xbox is specifically referring to XR when using the word “immersive.”

While Xbox has mentioned XR as a future opportunity, the company’s tone is still significantly skeptical that the tech has achieved a meaningful addressable audience.

In another section of the same document which overviewed Xbox’s competitors, the company pointed to Meta’s billions of dollars of investments into XR, but concluded by saying, “we view virtual reality as a niche gaming experience at this time.”

Another document from mid-2022, which overviewed the company’s long-term plans for Xbox all the way through 2030, noted that Microsoft wanted to expand its hardware portfolios to include new hardware categories, but nothing on that long-term roadmap pointed to any XR hardware.

While the leaked documents did focus on long timelines, business is always dynamic and priorities can shift quickly, so it’s important to remember that the documents are just a snapshot of Xbox’s view in mid-2022. With the more recent introduction of devices like Apple Vision Pro, it’s likely that Xbox is looking even more closely at how important XR may be to its future portfolio.

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Apple Joins Pixar, NVIDIA, & More to “accelerate next generation of AR experiences” with 3D File Protocol

Today, big tech companies including Apple, Pixar, Adobe, Autodesk, and NVIDIA, announced the formation of the Alliance for OpenUSD (AOUSD), which is dedicated to promoting the standardization and development of a 3D file protocol that Apple says will “help accelerate the next generation of AR experiences.”

NVIDIA has been an early supporter of Pixar’s Universal Scene Description (USD), stating last year it thinks Pixar’s solution has the potential to become the “HTML of the metaverse.”

Much like HTML forms a sort of description of a webpage—being hostable anywhere on the Internet and retrievable/renderable locally by a web browser—USD can be used to describe complex virtual scenes, allowing it to be similarly retrieved and rendered on a local machine.

Here’s how the alliance describes their new OpenUSD inititive:

Created by Pixar Animation Studios, OpenUSD is a high-performance 3D scene description technology that offers robust interoperability across tools, data, and workflows. Already known for its ability to collaboratively capture artistic expression and streamline cinematic content production, OpenUSD’s power and flexibility make it an ideal content platform to embrace the needs of new industries and applications.

“Universal Scene Description was invented at Pixar and is the technological foundation of our state-of-the-art animation pipeline,” said Steve May, Chief Technology Officer at Pixar and Chairperson of AOUSD. “OpenUSD is based on years of research and application in Pixar filmmaking. We open-sourced the project in 2016, and the influence of OpenUSD now expands beyond film, visual effects, and animation and into other industries that increasingly rely on 3D data for media interchange. With the announcement of AOUSD, we signal the exciting next step: the continued evolution of OpenUSD as a technology and its position as an international standard.”

Housed by the Linux Foundation affiliate Joint Development Foundation (JDF), the alliance is hoping to attract a diverse range of companies and organizations to participate in shaping the future of OpenUSD actively. For now it counts Apple, Pixar, Adobe, Autodesk, and NVIDIA as foudning memebers, with general members including Epic Games, Unity, Foundry, Ikea, SideFX, and Cesium.

“OpenUSD will help accelerate the next generation of AR experiences, from artistic creation to content delivery, and produce an ever-widening array of spatial computing applications,” said Mike Rockwell, Apple’s VP of the Vision Products Group. “Apple has been an active contributor to the development of USD, and it is an essential technology for the groundbreaking visionOS platform, as well as the new Reality Composer Pro developer tool. We look forward to fostering its growth into a broadly adopted standard.”

Khronos Group, the consortium behind the OpenXR standard, launched a similar USD initiative in the past via its own Metaverse Standards Forum. It’s unclear how much overlap these initiatives will have, as that project was supported by AOUSD founders Adobe, Autodesk, and NVIDIA in addition to a wide swath of industry movers, such as Meta, Microsoft, Sony, Qualcomm, and AMD. Notably missing in the Metaverse Standards Forum was support from Apple and Pixar themselves.

We’re hoping to learn more at a long-form presentation of AOUSD during the Autodesk Vision Series on August 8th. There are a host of events leading up to SIGGRAPH 2023 though, which goes from August 6th – 10th, so we may learn more at any one of the companies’ own presentations on USD.

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US Congress Halts Orders of Microsoft AR Combat Goggles Amid Reports of Headaches & Eyestrain

In 2021, Microsoft won a United States Army defense contract worth up to $22 billion which would support the development of an Integrated Visual Augmentation System (IVAS), a tactical AR headset for soldiers based on HoloLens 2. Now Congress has rejected the Army’s request for $400 million to buy as many as 6,900 more of the AR combat goggles this year, a Bloomberg report maintains.

The rejection cites rocky tests conducted last year. Testing was done over a three-week period ending June 18th, where the Army assessed Microsoft’s IVAS with a cadre of 70 Army infantry soldiers, who were tasked with using the device during three 72-hour combat scenarios.

Complaints included “mission-affecting physical impairments,” with more than 80 percent of soldiers experiencing headaches, eyestrain and nausea after less than three hours using the goggles.

None of this comes as a giant surprise though, as Microsoft was reportedly bracing for negative field tests back in early 2022 due to alleged quality problems.

Softening the blow somewhat, lawmakers have earmarked $40 million to develop a new IVAS model, Army spokesman David Patterson said in an email obtained by Bloomberg.

This comes only a few weeks after the Army awarded a $125 million “task order” for the development of a new model, dubbed version 1.2, which is said to include software improvements for better reliability and reduced power demand.

The 1.2 version task order is said to provide “improvements based on completed test events” which aim at a developing a “lower profile Heads-Up Display with distributed counterweight for improved user interface and comfort.”

In the meantime, the Army will be using its first batch of 5,000 goggles for training—only a small fraction of the max 121,000 devices, spares and support services stipulated in the $22 billion deal.

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