Google has reportedly been working on a secret VR project that would compete against the likes of the Oculus Rift and HTC Vive, but according to the latest reports the company isn't doing that - and that VR project has been scrapped.
In its place, Recode reports that Google has a small team working on a dedicated headset that "blurs the line between virtual reality and augmented reality", reports Engadget. Recode reports that around 50 people were working inside of Google X lab on a standalone VR headset with a unique operating system, but this project has been scrapped.
Instead, Google has been assigning individual employees to work on a high-end headset, with some people inside of Google being told that Daydream, Google's mobile VR platform, isn't part of the Mountain View-based giants long-term plans for VR and AR. Daydream is a smaller step towards AR and VR dominance for Google, with sources saying the new headset won't require a PC or a smartphone to power it.