Microsoft Corp. is introducing an improved version of its HoloLens augmented-reality goggles and lowering the price, as it tries to develop a bigger business selling the devices to corporate customers.

At $3,500, the HoloLens 2 with a wider field of view and easier controls than the original is still an expensive piece of gear, but it's less than the $5,000 cost to commercial users for the first version. The company is also selling the device, which lets users view, move, speak to and interact with 3D holograms, via a monthly subscription along with a related software app.

Microsoft is pitching the goggles as a tool for workers rather than consumers, envisioning it for tasks such as visually guiding factory workers as they learn new jobs or helping architects design buildings. Education company Pearson PLC and Koninklijke Philips NV, a health technology provider, are testing the new devices, and the U.S. Army in November awarded Microsoft a $480 million contract to supply HoloLens prototypes. About 50 Microsoft employees on Friday demanded the company abandon the Army contract, saying in a letter to company executives that they "did not sign up to develop weapons, and we demand a say in how our work is used."