(Reuters) - Meta Platforms ( META ) is planning a mixed reality device that resembles a bulky pair of glasses, the Information reported on Wednesday, citing two employees from the social media giant.

Internally code-named "Puffin", the new project is focused on designing an alternative to the heavy headsets offered by Facebook's parent company, which have a limited consumer appeal, the report added.

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

Mixed reality merges augmented and virtual reality and allows real-world and digital objects to interact.

Augmented reality overlays text, sounds, graphics and video onto real-world images that users see in front of them, while virtual reality puts users into a completely artificial environment, creating computer-generated experiences.

Puffin would be a significantly smaller device than Meta's existing Quest headsets, the report said, adding the project is still in early stages with a planned release in 2027.

Meta's Reality Labs division, in charge for developing and marketing the Quest line of VR headsets, has incurred financial losses amounting to billions. Despite this, CEO Mark Zuckerberg remains optimistic about the future prospects of augmented and virtual reality technologies.

Unlike Quest headsets, the new Puffin device will not include handheld controllers as users will be able to operate it with hand gestures and eye movements, according to the report.

The virtual and mixed reality headset market gained renewed attention following Apple's entry last year, although its Vision Pro has faced challenges in sales due to a pricy tag of nearly $3,500.