Oculus is working on a £150 standalone VR headset, apparently

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According to a new report out of Bloomberg, Facebook's Oculus has partnered with Xiaomi and are currently developing a new VR headset that will only cost $200.

The designs and features have not been finalised, but Bloomberg's sources reportedly said it will look like a more compact version of the Rift and that it will be lighter than the Samsung Gear VR.

"We don't have a product to unveil at this time, however we can confirm that we're making several significant technology investments in the standalone VR category", Facebook said in a statement.

According to people close to the development of the device, it will ship next year and will represent a bridge between the high end headsets like the Rift and the budget models like the Gear. However, these devices are expected to be more powerful Facebook's new effort, and will likely sell for $500 or more.

Facebook hopes this will mean more people use Spaces to interact with their friends who can't use VR to contact one another. Oculus is understood to be keen to apply InfiniLED's technology because it uses 20-40 times less power than existing LED or OLED displays. You never really see this in real life, so it should be interesting to see how effective this initiative will be on the market and how aggressively Facebook begins to push VR content.

Earlier this year Facebook introduced Facebook Spaces, a new virtual reality environment that let you socialise with your friends in VR by using Oculus Rift. What's been your headset of choice? Google announced at its I/O developer conference in May that it was building wireless Daydream headsets together with HTC and Lenovo.

The new device will carry the Oculus branding around the world except in China where it will take the Xiaomi brand-this being a part of a planned partnership that extends to the manufacturing of the device. You certainly won't be short of things to do and play inside the virtual reality experience. The lower price and the untethered freedom of smartphone powered units are naturally preferred.