Apple is planning to launch the headset, codenamed N301, as soon as 2022. It’s would be competing against existing products like the Oculus Rift and HTC Vive and it’s expected to be super expensive. It’s described as an immersive, multipurpose device for gaming, videos, and communication. There will be some AR functionality, allowing you to overlay images over the real world, but the report says this aspect will be “limited.”
Current prototypes of the device are about the size of the Oculus Quest, and Apple seems to have created a system that allows to use prescription lenses in the headset rather than trying to wear it over your glasses. In terms of performance, prototypes have included a processor that outperforms the new M1 chip.