Microsoft’s Alex Kipman with the HoloLens 2. | Photo by Vjeran Pavic / The Verge

Microsoft claims “HoloLens is doing great” after a report earlier this week revealed HoloLens 3 may have been canceled. Business Insider reported on Wednesday that Microsoft has scrapped plans for HoloLens 3 in recent months and that it could be “the end of the road” for the headset. Microsoft has reportedly agreed to partner with Samsung on a new mixed reality device, a move that has apparently “inflamed divisions” that exist in Microsoft’s mixed reality teams.

The software giant has been working on a custom HoloLens headset for the US Army in a contract that could be worth up to $21.88 billion over 10 years. The headset is supposed to use augmented reality and machine learning to enable a “life-like mixed reality training environment,”…

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