Google is working on a sequel to Google Cardboard, its low-cost basic virtual reality (VR) headset, according to the Financial Times.
The company launched the Cardboard viewer in mid-2014. It is a simple handheld wearable device that allows users to experience VR through smartphone apps.
The new headset will feature improved lenses and sensors, and will come in a plastic casing, similar to the Samsung Gear VR. According to the report, the headset will still require a smartphone.
Google will also add improved support for VR to its operating system, Android.
The company announced Google Cardboard at its annual developer conference in 2014, and the new version is expected to be unveiled at this year's conference in May.
Last month, Google said it had shipped five million units of the Google Cardboard viewer and noted there had been 25 million downloads of Cardboard apps from its Google Play app store.
Google announced in November that YouTube supported VR videos, and to date, more than 350 000 hours of video have been watched in VR.
Oculus, the virtual reality company Facebook bought in 2014, started accepting pre-orders in January for its much-awaited Rift headset, which will ship in the first quarter. The Rift starts at $599 (R9 500). It is not yet known how much the new Google headset will cost.
The Google Cardboard was mostly given away free to get the VR experience in front of as many eyes as possible.
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