(Reuters) -Meta Platforms ( META ) has canceled plans for a premium mixed-reality headset intended to compete with Apple's Vision Pro, the Information reported on Friday.

The company told employees at its Reality Labs division to stop work on the device this week after a product review meeting, the report said citing two Meta employees.

The axed device was internally code-named La Jolla and was scheduled for release in 2027, the report said. It was going to contain ultrahigh-resolution screens known as micro OLEDs - the same display technology used in Vision Pros.

The virtual and mixed reality headset market gained renewed attention with Apple's entry last year, but its Vision Pro has struggled to sell due to the pricy $3,500 tag.

Meta's Reality Labs division, responsible for developing and marketing the Quest line of headsets, has incurred billions in losses. Still, CEO Mark Zuckerberg remains optimistic about the future of augmented and virtual reality technologies.

The existing line of Quest headsets include the Quest 2, which retails for $200, and the Quest 3 for $500.

Meta had stopped production of the Quest Pro - its most expensive headset priced at $999 - in 2023 after encountering weak sales and poor reviews, according to the Information report.

Meta did not immediately respond to a Reuters request for comment.