The momentum for smart AR glasses has shifted toward mixed reality (MR) headsets, which offer a much more compelling user experience, using 3D depth sensing and positional tracking to immerse the user into a holographic world. Microsoft HoloLens is the first truly capable MR headset and is seeing rapid momentum in terms of trials and pilots. There are still questions about whether or not Microsoft has oversold the capabilities of the device, and if the enterprise market can scale to make it a commercially viable product. Tractica expects that Microsoft is likely to be committed to the enterprise market at least through the end of 2018 before it readies the HoloLens for consumer launch. If the pilots do not convert into meaningful volumes, Microsoft could find itself in an awkward place like Google did with Glass, eventually pulling the plug.