(Pocket-lint) - Google reportedly had plans to take on Oculus, HTC and PlayStation with its own high-end virtual reality headset. However, it was scrapped with the company said to prefer to continue down the mobile VR route instead.

Recode claims that Google is streamlining its projects, which include ditching the more ambitious plans for VR. It cites "sources familiar with the plans" for the information.

Scrapping the standalone headset came at some cost, claimed the sources, with around 50 employees originally working on it. Interestingly though, they were also working on a VR operating system separate to Android, it is said.

The VR unit still remains, but it is likely to be working full time on Daydream now, Google's unified mobile virtual reality technology.

We're still waiting for the virtual reality tech market to kick on like many predicted at the beginning of 2016. Pricing and initial shipping delays for both Oculus Rift and HTC Vive have ensured that take up of those headsets has been steady rather than explosive. However, the PlayStation VR headset is yet to be released, with units hitting stores in October.

It is thought its price and, more importantly, its compatibility with PS4 consoles millions already own globally could see VR gain momentum.

Writing by Rik Henderson.