Meta Platforms (META.O) has scrapped its plans to develop a high-end mixed-reality headset, which was intended to rival Apple's (AAPL.O) Vision Pro. According to a report from The Information, Meta decided to discontinue the project, codenamed "La Jolla," after a product review meeting this week. The device, initially scheduled for release in 2027, was expected to feature advanced micro OLED displays, similar to those used in Apple’s Vision Pro.

The market for virtual and mixed reality headsets has been revitalized by Apple's recent entry, despite the Vision Pro facing challenges due to its steep $3,500 price tag. Meta’s Reality Labs division, which oversees the development of the Quest headset line, has been under significant financial strain, with billions in losses reported. However, CEO Mark Zuckerberg remains optimistic about the potential of augmented and virtual reality technologies.

Meta's current lineup includes the Quest 2, priced at $200, and the Quest 3, which sells for $500. The company had already ceased production of its most expensive model, the Quest Pro, in 2023, following disappointing sales and mixed reviews.

Meta has yet to comment on the decision to halt the development of La Jolla.