US Army has awarded Microsoft Corporation (MSFT) a contract to make augmented reality headsets IVAS for soldiers. CNBC reported, citing a Microsoft representative, that the Microsoft Corporation will sell over 120 thousand devices in the next ten years, and the contract has a value of up to $ 21.88 billion.
On this news, Microsoft Corporation’s (MSFT) shares rose in price by 2% one hour before the end of trading on March 31, to $ 239.07, but then corrected slightly. And closed the day at $ 235.77 per share.MSFT stock recorded an intraday high of $239.10. It also recorded an intraday low of $232.39 during Wednesday’s trading session. The stock’s trading volume on Wednesday was 43.62 million.
These devices make use of the Microsoft HoloLens headgear introduced in 2016. The Microsoft Corporation wrote in a blog post dated Wednesday. Microsoft Corporation has begun working with the military since 2018. A prototype IVAS was then created for $480 million and tested by soldiers for two years.
The IVAS system is a type of “head-up display” used by pilots of military aircraft. The system lets commanders project information onto visors in front of soldiers’ faces, then enables night vision and other features.
In a statement, the US Army said that the new system would make it possible for melee forces to practice in a realistic mixed reality environment before engaging in combat with adversaries. Microsoft will provide software for the headsets and support them through the Azure Cloud Service.
Virtual content is overlayed in the real world through augmented reality (AR) technology. Many retailers, healthcare workers, and auto mechanics have started to use augmented reality headsets, particularly since the onset of the pandemic. Microsoft Corporation (MSFT) competes with dozens of vendors in this area, including Alphabet and Magic Leap.