- Congress rejected the U.S. Army’s request for $400 million to buy up to 6,900 Microsoft Corp (NASDAQ: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.
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 (NASDAQ: MSFT) combat goggles this fiscal year.
