- I'd be very surprised if Apple releases their AR headset without a similar-size (70% or more) investment over the preceding decade. RDT&E for environment-aware devices is incredibly expensive.
- Defense funding and procurement amounts often shock those not in the industry, but the truth is that the entire market for most of what the DoD funds is...the DoD. Sure, a lot of the components and IP can be reused in the commercial sector, but for most programs the DoD has to fund both the initial R&D and the unit sales, because the market is so much smaller and device sales are heavily restricted (e.g. ITAR). The DoD also has MUCH broader and stricter requirements for security, safety, reliability, and compliance with a daunting array of standards and processes than the commercial industry. To be clear, this is on net a good thing for the DoD and by extension the rest of the USA, but it does increase development costs.
Certainly there is profit being made by Microsoft here, that's kind of the point of partnering with the DoD. But the intuitive comparison of "DoD programs should cost the same as developing a commercial equivalent" that many of us make is fundamentally apples and oranges in both the product development and the economics.
- I'd be very surprised if Apple releases their AR headset without a similar-size (70% or more) investment over the preceding decade. RDT&E for environment-aware devices is incredibly expensive.
- Defense funding and procurement amounts often shock those not in the industry, but the truth is that the entire market for most of what the DoD funds is...the DoD. Sure, a lot of the components and IP can be reused in the commercial sector, but for most programs the DoD has to fund both the initial R&D and the unit sales, because the market is so much smaller and device sales are heavily restricted (e.g. ITAR). The DoD also has MUCH broader and stricter requirements for security, safety, reliability, and compliance with a daunting array of standards and processes than the commercial industry. To be clear, this is on net a good thing for the DoD and by extension the rest of the USA, but it does increase development costs.
Certainly there is profit being made by Microsoft here, that's kind of the point of partnering with the DoD. But the intuitive comparison of "DoD programs should cost the same as developing a commercial equivalent" that many of us make is fundamentally apples and oranges in both the product development and the economics.