Alphabet Inc.-C (Nasdaq:GOOG) is developing a new Virtual Reality (VR) headset for smartphones, and adding extra support for the technology to its Android operating system, Financial Times reports.

The new headset, which is expected to be released this year with new Android VR technology, will be a successor to Cardboard – a simple, low cost, and surprisingly successful head mounted VR viewer, powered by any smartphone, with a stereoscopic display and on-board accelerometer. The renaissance of the VR market, triggered by high-end devices like Facebook’s (FB) Oculus Rift and Samsung Gear VR creates a niche for low-cost viewers based on Cardboard technology as well.

The first Alphabet VR headset is called Cardboard because the first units shipped were actually made of cardboard instead of futuristic shining plastic. The device, a smartphone head-mount with lenses and magnets, can be fastened around the head and used as a headset. Any smartphone with a stereoscopic display and on-board accelerometer for motion sensing – standard features in today’s smartphones – can be inserted in the device to generate 3D scenes with associated audio, that the user can enjoy in interactive, immersive VR mode.

More than 5 million Cardboard units have shipped so far, and consumers are warming up: Alphabet says that 25 million Cardboard apps have been downloaded from its Play Store, meaning users have tried an average of five different VR experiences on the device. But Cardboard is “just the first step” in Alphabet’s VR efforts, said Google CEO Sundar Pichai on Alphabet’s earnings call. “Beyond these early efforts, you’ll see a lot more from us and our partners in 2016.”