Microsoft is planning to unveil its HoloLens 2 headset later this year. Sources familiar with Microsoft’s plans tell The Verge that the software maker is tentatively planning to unveil some details on the next version of HoloLens in the second half of 2018, similar to how the Surface Hub 2 was introduced. The HoloLens 2 headset, codenamed Sydney, will include an improved field of view, and will be a lot lighter and more comfortable to wear. Microsoft is also reducing the cost of the headset significantly, to drive business adoption. Thurrott.com first reported the Sydney codename on Tuesday.

We’re told that Microsoft has been testing future versions of its HoloLens headset with an ARM-based processor inside that will help boost battery life. Google is also reportedly building its own ARM-based augmented reality headset. The HoloLens 2 will also include Microsoft’s latest generation of the Kinect sensor, and a custom AI chip to improve performance. Microsoft is also targeting a HoloLens 2 release date for 2019, and the company is on track to hit this target.

Microsoft’s next HoloLens will also include a variant of Windows 10, similar to the existing headset, and designed especially for its mixed reality use cases. It’s part of Microsoft’s clever modes for clever hardware plans, alongside the Surface Hub 2 and a potential Surface-branded notepad device (codenamed Andromeda).