"Whatever you are imagining, however crazy you imagine I am, multiply it by ten and then do it again," Luckey said.

Microsoft will continue to support IVAS functionality with "advanced cloud infrastructure and AI capabilities," but it's out of the hardware game.

Anduril founder Palmer Luckey has a plan for “turning soldiers into superheroes” that starts with taking over a mixed-reality headset project for the U.S. Army, the Integrated Visual Augmentation System program.