Army Wants Microsoft's HoloLens Headsets for Battlefield

Virtual- and augmented-reality headsets haven't had much traction in the consumer market, but they're finding a place on the battlefield.

The U.S. Army said Thursday that it has awarded Microsoft a $480 million contract to supply its HoloLens headsets to soldiers.

The head-mounted displays use augmented reality, which means viewers can see virtual imagery superimposed over the real-world scenery in front of them. Microsoft says the technology will provide troops with better information to make decisions.

The Redmond, Washington, company says the new work extends its longstanding relationship with the Department of Defense.

Military bidding documents say the technology will be used for both training and fighting, bringing more situational awareness to troops to help them become more lethal and mobile.