Pentagon, US Army Debate Over $22B Budget For Microsoft Combat Goggles

• The U.S. Army initially looked to spend ~$22 billion over the next decade on high-tech combat goggles and related services from Microsoft Corp (NASDAQ:MSFT), Bloomberg reports.
• The initial guidance could be double what the service expects. 
• A Pentagon inspector general saw the contract straining up to $21.9 billion in taxpayers' funds.
• However, the Army argued that the estimate was a worst-case scenario and a ceiling including every hardware, component, and service for what the service would look to spend over the decade.
• "Less than half of this total is possible for the U.S. Army," said the Army.
• Microsoft's Integrated Visual Augmentation System will likely provide a "heads-up display" for U.S. ground forces and let commanders project information onto a visor in front of a soldier's face, including night vision.
• Price Action: MSFT shares traded lower by 2% at $275.18 on the last check Friday.