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Microsoft (MSFT) HoloLens 2 Enters Industrial Metaverse Space

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Microsoft (MSFT - Free Report) recently announced extending the access to HoloLens 2 capabilities from a single application, Dynamics 365 Guides, to boost the adoption of HoloLens 2 among industrial metaverse customers.

Microsoft’s latest wave of updates combines its key Dynamics 365 Mixed Reality Apps and adds Microsoft Teams and OneDrive to existing integrations with Azure and Power Platform. As a result, Microsoft is delivering the cloud-powered productivity and collaboration tools to frontline workers.

Dynamics 365 Guide guarantees security to users in industrial environments since they can access both the information necessary to carry out their work correctly and receive instructions from other technicians in the same environment with maximum protection and privacy.

Through the latest update, HoloLens 2 users can combine different holographic windows with a Teams call or chat, Power BI dashboard, Word document, PDF or video, their OneDrive folder or calendar and operate intuitively in an immersive 3D environment.

Microsoft Paves Way for Metaverse Through HoloLens 2

Microsoft's holographic viewer, HoloLens 2, uses mixed reality to speed up business processes, improve their efficiency, collaborate naturally over distance using holograms or conduct real-time video calls through Microsoft Teams.

The sudden rise of the metaverse concept only adds to the HoloLens potential. Toyota Motors (TM - Free Report) , the Japanese automobile manufacturing company, is using the new functions of HoloLens 2 to enter the industrial metaverse. Using Microsoft Azure, Dynamics 365 and Microsoft Mixed Reality, customers can create digital twins of a factory or warehouse and simulate manufacturing or supply chain processes in the cloud – to boost operational efficiency or shrink their environmental footprint – before committing them to physical form.

Microsoft is set to acquire Activision Blizzard (ATVI - Free Report) in an all-cash deal for $68.7 billion to competitively enter the world of gaming in the metaverse. Microsoft’s strategic plan to buy Activision has helped it become the third-largest gaming company in the world and provided it with the expertise to claim its stake in the multimillion-dollar metaverse market.

Furthermore, Microsoft’s Xbox gaming system can be used to provide users access to the metaverse.

Robust Capabilities Make HoloLens 2 a Winner

This Zacks Rank #3 (Hold) company released a second-generation HoloLens 2 in 2019. At that time, it steered the AR headset toward the commercial market instead of consumer use. HoloLens 2 has gained significant adoption from developers, ranging from defense (U.S. army, Israel army), healthcare, architecture, construction industries to scientific research domain. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

With focus on enterprise, the company is investigating various use cases of this ergonomic device’s services. These include transforming the health sector with enhanced surgeries, the utility sector with an improvised construction technology and asset management with its robust industrial equipment monitoring techniques to mention a few.

We believe Microsoft’s focus on improving its products with the emerging technologies including AR, VR or MR, IoT, AI among others is helping the company explore new use cases for its offerings. These initiatives assist in snapping up contracts, which are anticipated to boost the company’s top-line growth going forward.

Volkswagen (VWAGY - Free Report) collaborated with Microsoft to use HoloLens 2 to project information of interest inside cars, such as holograms that show traffic information, weather conditions, or route recommendations while driving. HoloLens 2 tracks movement through a combination of camera sensors and an inertial measurement unit.

Earlier this year, Renault adopted HoloLens 2 and Dynamics 365 Remote Assist to eliminate the need for technicians to travel for training, leading to substantial savings. Reducing travel also cuts CO2 emissions by 80% and ultimately improves Renault's overall carbon footprint.

In 2021, it announced a deal to supply the U.S. Army with 120,000 custom, ruggedized HoloLens headsets. The 10-year contract could be worth nearly $22 billion.

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