There may have been a sign of the cancellation when IMAX mentioned a "final contractual payment" for the VR camera in its latest quarterly earnings.

Why the change of heart? Reportedly, it's all about Google shifting focus to augmented reality. Although the company hasn't given up on 3D videography (the company hired staff from Lytro before it shut down), AR appears to be the more tempting prospect. And that's not surprising. Headset-free technologies like ARCore are much more accessible and easier to implement -- Google can reach a large chunk of its Android user base where only a small fraction might buy a Daydream headset or head to a VR theater.