IMO the issues Microsoft had weren't unexpected. If you look at the disaster that was their US military Hololens project it turns out a fairly significant portion of the population experiences motion sickness and other fundamental issues[0].
This is a hard problem to solve and from what I understand it is similar to issues that are screened for in specialties. For example - fighter pilots and astronauts are screened for all kinds of fundamental things:
- Vision
- Tolerance to motion sickness
- Tolerance to Gs
- Tolerance to claustrophobia (for flight suits, tight cockpits, etc)
If you don't have 20/20 vision (or better), puke all the time in sims, and freak out when put in a flight suit you're just not a fighter pilot, astronaut, etc. Once you make that cut then you train on improving what you fundamentally have and even then wash-out rates are high.
With the Hololens project the goal was to strap a Hololens on pretty much any random soldier. If some fairly large portion of the population just can't make it work the utility and value of the project drops to zero. Imagine standardizing on a gun sight or other key technology that just won't work for even 1/10 of your (already limited recruits), potentially even for otherwise elite soldiers.
I think they realized they will have similar fundamental issues in the enterprise - the utility of a Teams meeting with everyone in Hololens drops pretty significantly when a non-zero portion of employees get sick after a few minutes.
I'm not sure how these issues with the technology can be overcome. Sure, if some gamers can make it work that's cool but that doesn't provide the overall value to the technology MS was hoping for.
[0] - https://www.engadget.com/microsoft-hololens-fails-us-army-te...