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This resulted in the army starting development on new weapons, and finally shelving the XM29 in 2004. The kinetic energy component split off into the [[XM8 rifle]] program and the airburst component developed into the [[XM25 CDTE|XM25]] airburst weapon. According to a presentation by [[Major]] [[Kevin Finch]], Chief of the Small Arms Division of the [[Directorate of Combat Developments]] at the U.S. Army Infantry Center, there were three main parts to the OICW program:
* Increment 1 (OICW 1) was a competition for a whole weapon system family similar to the [[XM8 rifle|XM8]]. The weapon system was to potentially replace the [[M4 carbine]], [[M16 rifle]], [[M249 Squad Automatic Weapon|M249]] [[light machine gun]] and some [[M9 pistol]]s. Other [[arms industry|arms companies]] had contended that the OICW project goals had changed enough to warrant another competition. Potential challengers could include a weapons system based on an updated M16, the [[Steyr AUG]], the
* OICW Increment 2 was a stand-alone airburst weapon the ([[XM25 CDTE|XM25]]). This is a standalone launcher that uses bigger 25 mm munition, and was intended to be a special applications and support weapon, not an individual combat weapon as previous models were. In 2005, the weapon underwent limited field trials and combat testing.
* OICW Increment 3 was the XM29. The M203 was listed as being replaced by a combination of Increments 2 and 3. The M249 was also to be partially replaced by a lightweight MG (LMGA, now LSAT), which was listed as being the successor to the [[M60 machine gun|M60]] and [[M240 machine gun|M240]].
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