The decision likely stems from Google's effort to streamline its more ambitious projects, an ongoing slog at the company. In this instance, Google is shifting more resources behind mobile VR—tools for companies to build apps, games and services on smartphones that use the nascent media—rather than expensive hardware.
Google declined to comment.
In May, the company released Daydream, a platform and reference design for new VR hardware that's a more advanced version of its thrifty Cardboard headset. (Google also said it would be releasing its own Daydream headset.) The Daydream platform is built on the latest version of Google's Android operating system.
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.
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