[quotemsg=17585972,0,570460]This is also a more complex product in a lot of ways. In the simplest terms, the Rift is a split display that tracks head movement. It needs something else to do the processing and feed it the pictures. The HoloLens generates its own images and tracks your environment on its own.[/quotemsg]Right. Unlike VR, it must perform simultaneous localization & mapping, and it must project the synthetic imagery at the same focal plane as objects in the real world that are at the same depth, since its display is transparent. They're most likely using a sophisticated lightfield projector, which requires a lot more rendering horsepower than a simple 2D display.
I didn't think AR would be this advanced, for a few more years. It blew me away, when MS announced this, early last year.
Given the amount of resources this required and the amount of time it took, it truly deserves to be called a moonshot project. I even had to muster some respect for Steve "Monkey Boy" Ballmer, when I learned of it.