Microsoft Health is Redmond's app that is all about fitness tracking, sharing it socially, and so on. The company has done much to add enhanced functionality to its health app, bringing greater notification controls and a more challenging health app earlier this year.
Microsoft's Health app works with its first-generation Band and Band 2, but the name "Microsoft Health" isn't unified enough with the fitness band with which it works, since some consumers may not know how to search for it in the Google Play Store, for example. This has moved Microsoft to rename the app "Microsoft Band" to match the company's fitness band. The Microsoft Band app (it's now called) doesn't offer much except for bug fixes with its Google Play Store update -- except for the name. Microsoft's move to unify the name of the Band with its Health app is the same move that Samsung has made to move its lineup to the number 7 for 2016 (this is why Samsung has no Galaxy Note 6 in its lineup, but sold its latest-generation phablet as the Galaxy Note 7).
Despite the company's efforts to unify its products and services lineup, Microsoft has decided to skip crafting a Microsoft Band 3 this year. It's unfortunate, but maybe it's what the company needs to get Band 2 inventory cleared out with further price drops and some good luck.