According to a Financial Times report, the new device with better Android VR technology will succeed the mobile VR viewer Cardboard that Google launched 12 years back.
It will also give tough competition to Gear VR - the flagship headset launched by South Korean electronic giant Samsung in collaboration with the US virtual reality technology company Oculus which is now available in India.
How is the new Google VR headset going to beat its rivals? According to the report, the company is embedding a new software directly into its Android operating system rather than relying on the app that is there with Cardboard for a better VR experience.
The updated Google headset will be compatible with a much broader range of Android devices than Gear VR that requires a compatible Samsung Galaxy smartphone.
A Cardboard unit consists of a cardboard housing, velcro and two lenses.
To use the headset, place a smartphone in front of the lenses and let the app on the smartphone replicate a virtual environment for you.
As you turn and move your head, the app adjusts based on the phones sensors that detect movement.
Google is expected to release the updated VR headset this year.
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