In June, Microsoft’s mixed reality unit, responsible for HoloLens headsets and other nascent metaverse projects, underwent a major shakeup. Alex Kipman, who led the metaverse’s strategy, left after an Insider investigation into allegations of misconduct.

Now, months later, Microsoft insiders say the company’s metaverse and mixed reality ambitions remain uncertain amid canceled projects, budget cuts, a struggling contract with the US military and a lack of leadership. One source said there is “no roadmap to speak of” for HoloLens as Microsoft focuses on the Army contract. And the special headsets Microsoft is making for the battlefield are still falling short in some areas.

“The devices would have killed us,” said one tester about…