Intel has stopped the development on its Project Alloy standalone VR headset, as it lacked performance and could not compete with PC-powered VR headsets in terms of price.

Intel and Microsoft launched Project Alloy last year as one of the first instances of making the technology behind virtual reality into an open-source platform.

According to Kim Pallister, the director of the Virtual Reality Center of Excellence at Intel, the lack of customer interest, and a discovery that a self-contained headset didn't offer the performance of a PC that could be plugged into a wall, forced the company abandon the project.

Obviously, Intel was also hit by the choices made by manufacturers including Asus,Acer and Dell to focus their resources on building Microsoft Mixed Reality headsets.

In the meantime, separate projects to build a wireless WiGig link into a VR headset as well as Intel's partnership with HTC would be more promising for Intel.