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Xiaomi’s next big product announcement could be a VR headset. Xiaomi, which is steering away from smartphones with alternate smart devices like smart rice cooker and air purifiers, could announce a new VR headset based on Google’s Daydream in August.

Xiaomi’s reason to enter Virtual Reality seems to be its own MIUI based on Android. Xiaomi ships its smartphones with MIUI which is a forked version of Android that relies heavily on customisation and smart features. Xiaomi’s VR headset plans have been revealed by company’s General Manager, Tang Mu. Tang Mu says, Xiaomi is building its own VR headset to provide best VR experience to its MIUI users.

Related post : What is Google’s Daydream? When are they launching it?

Xiaomi was a surprise entrant at Google’s I/O 2016 this year. While Xiaomi only announced a 4K enabled Mi Box based on Android TV, it was apparent that the company has larger ambitions. Xiaomi commands a significant ground in the smartphone industry thanks to its expansive offerings in the budget category. With its own VR headset, Xiaomi can take virtual reality to next set of users who are shying away from adopting the platform.

If the company does launch a virtual on August 1, it will join the likes of Samsung, Sony, HTC, and Google, who have developed their own VR headsets – in this case, to optimise for its MIUI ecosystem. Virtual reality is a fairly new category but has already seen products that are made out of just cardboard to advanced piece of hardware like on Oculus Rift and HTC Vive.

Since we are talking Xiaomi here, Android Headlines claims the Daydream-powered VR headset will be cheap. Google announced Daydream as the native platform for Android at its annual developer conference. The platform will primarily be baked into the next version of Android for more immersive experience that what current devices offer.

At I/O 2016, Google made it clear that Daydream compatible smartphones will come with strict restriction for hardware, which could mean that Xiaomi is also working on compatible smartphones. While Samsung makes its own GearVR powered by Oculus for its flagship Galaxy range, Xiaomi could adopt a similar strategy by introducing a new VR headset with flagship smartphone to power it.

Related link : Check Out what is OSVR and why you should support it