HoloLens 2 will reportedly address the biggest criticism of the first model

Back in 2016 Microsoft entered the augmented-reality game with HoloLens, a headset that delivered a true mixed reality, combining the real world with virtual images on a transparent display.

Developers and early adopters quickly realized that, while HoloLens was promising, it was being held back by its small field of view. However, this will reportedly change with the second generation of the hardware.

The Verge reports Microsoft is planning to unveil HoloLens 2 by the end of the year. Codenamed Sydney (a name first revealed by Thurrott), the new model will apparently address the biggest criticism of the current HoloLens: its limited field of view. HoloLens 2 will improve things, the report says, but it's unclear by how much.

HoloLens 2 should have the latest Kinect sensor onboard as well as a proprietary artificial intelligence chip. Both of these should improve the visuals and latency, creating a more immersive mixed-reality experience.

While details are still scarce, the second-generation headset will be built around an ARM-based processor (the current model uses a discontinued Intel chip), which could bring better battery life, allowing users to be in the mixed reality for a longer period of time.

There will likely be a larger focus on consumers with the new model. So far HoloLens has mostly been a developer and enterprise play, and it carries a high price tag ($3,000 for the developer edition, $5,000 for the commercial "suite"). Hopefully the second generation will be more affordable, bringing the tech to a new class of customers.

Microsoft is expected to unveil HoloLens 2 by the end of the year, but don't expect to your hands on one until 2019.