For those not familar with the rumours he is alledged to have watched what was described as "VR porn" in front of members of his team, with some members walking out on the meeting.

Rumors of troubles with the HoloLens program have been rampant since well before the BI report, however, including problems with the US Army contract to develop HoloLens for military use and the cancelling of the HoloLens 3 project.

According to an internal Microsoft email, "(w)e have mutually decided that this is the right time for him to leave the company to pursue other opportunities." Kipman will remain at Microsoft to help with a transition for the next two months.

Along with the resignation of Kipman, a number of other changes are occurring to accelerate and align Microsoft's metaverse work. The Mixed Reality Hardware team, including HoloLens and IVAS (the military HoloLens project) will join Windows + Devices under Panos Panay.

The Mixed Reality Presence and Collaboration teams, which includes Microsoft's Mesh initiative, will move to the Teams organization (in the Experiences + Devices division) under Jeff Teper.

How the moves will affect the already beleagured future of HoloLens remains to be seen, but Microsoft seems committed to the metaverse, including the Microsoft Mesh SDK, the IVAS project, and building out features of a metaverse in Teams.