An anonymous reader writes from a report via Recode: Google recently nixed an internal project to create a high-end standalone virtual-reality headset that would compete directly against the Oculus Rift and HTC Vive, according to sources familiar with the plans. Google instead decided to shift more of its resources behind mobile VR and provide tools for other companies to build apps, games and services on Android-powered smartphones, rather than expensive hardware. In May, the company announced "Google Daydream," a platform that will help hardware and software developers create VR hardware, games, and experiences for its new Android Nougat operating system. Google did say they would be releasing their own VR headset, but it's mostly geared towards developers. A different VR project was started inside the Google X research lab, which is now a separate Alphabet company, with around 50 employees working on it, according to one source. That project was creating a separate operating system for the device, unique from Android. Now, it appears that the OS and project were scratched in favor of Android. The report suggests that Google is not as interested in competing directly with hardware from Facebook, Samsung, HTC and others. Apple has been recently granted another AR/VR patent, suggesting the company might be building a VR headset of its own.