Oculus has been busy trying to push its Rift VR headset to the masses over the past few years but it has been met with lukewarm interest due to its expensive price point – although it is now receiving a price cut – and complicated set-up. In response, Oculus is shifting directions and is working on a cheaper, wireless VR system that will be announced later this year.

First reported by Bloomberg, Oculus’ new headset will retail for $200 and will be made through a partnership with Xiaomi. It will fall somewhere between its pricier Rift system and cheaper VR headsets like Samsung’s $130 Gear VR.

Code-named “Pacific,” the headset reportedly resembles a compact version of the Rift and is lighter than the Gear VR. Development for the headset is still ongoing, so the final design has yet to be agreed upon. The VR system will be powered by a Qualcomm mobile chip.

This isn’t the first time Oculus has showed interest in working with more compact VR systems. Just last year, it showed off its Santa Cruz prototype—a system that featured many cameras that utilized inside-out tracking. There has been absolutely zero news of the Santa Cruz since that time, hinting at Oculus’ shift of attention to this new “Pacific” headset.

Oculus’ partnership with Xiaomi will reportedly involve international distribution as well as a custom Chinese version with Xiaomi’s branding and software.