According to a new report, Google has scrapped its plans to release a high-end VR headset that would have competed with others like the Oculus Rift and HTC Vive. The project, which was building hardware and another operating system, reportedly had around 50 people working on it and was scratched in favor of just using Android. Back at Google I/O the company revealed DayDream, which is a VR platform that is already built on top of the upcoming version of Android, Nougat.
Meanwhile, a different VR project was germinated inside the X research lab (now a separate Alphabet company) with around 50 employees working on it, according to one source. More critically, that project was creating a separate operating system for the device, unique from Android.
Now, it seems, that OS and project were scratched in favor of Android. I don't know how far along the project was. Google, of course, shuts or redirects many projects, particularly those from X.
Google is constantly working on projects, many of which never make it into consumer hands, so it isn't all that surprising to hear that a project that overlaps another upcoming release was canned in favor of the other.