Meta, the tech giant behind Facebook and Instagram, has abruptly canceled development on a high-end mixed reality headset. This decision comes in the wake of the underwhelming reception to Apple’s Vision Pro, a similar device that was launched earlier this year.

According to The Information, Meta’s high-end headset was slated for release in 2027 and was designed to compete directly with the Vision Pro. The device was equipped with high-resolution micro OLED displays, a key feature that Apple also incorporated into its product. However, the high cost of these displays made it difficult for Meta to achieve its target price point of under $1,000.

While the high-end headset has been shelved, Meta is still moving forward with its more affordable Quest line. The company is currently developing the Quest 4, a successor to the Quest 3, which is expected to launch in 2026. Like its predecessor, the Quest 4 is likely to be priced around $500.

In addition to hardware, Meta is also focusing on software development. Earlier this year, the company announced Horizon OS, a platform designed to enable third-party hardware makers to create their own VR and AR devices.

The cancellation of Meta’s high-end headset is a significant setback for the company’s ambitious plans in the AR/VR space. When the Vision Pro was released, Meta had hoped that it would reinvigorate the headset market and validate Zuckerberg’s major push into the technology. However, the Vision Pro has struggled to gain traction with consumers, and interest in the device has declined over time.

Apple’s decision to halt work on a second-generation high-cost Vision Pro and focus on a lower-priced model is further evidence that the market for expensive headsets may be limited. It remains to be seen whether Meta will be able to successfully navigate the challenges of the AR/VR industry and achieve its long-term goals.