A report published by Brad Sams on Thurrott suggests that Microsoft Corporation (NASDAQ:MSFT) might cancel the version two of its HoloLens device and move straight to version three.

Microsoft sees no competitor in the augmented reality (AR) space, and is not feeling any pressure to launch a product that is only an incremental update, according to sources with direct knowledge of the company’s plans.

Typically, second generation devices are smaller and more affordable than first generation devices. And companies launch version three with a new technology.

“By skipping what was version two on their roadmap, the company can accelerate version three which will be closer to a generational leap and help keep Microsoft ahead of the competition. My sources are telling me that this version of Hololens will not arrive until 2019,” Sams writes.

Launching version two would not allow the Redmond tech giant to introduce version three by 2019.

“In short, the company is making a bet that the advancements they are investing in today for the v3 version of Hololens are significant enough and add enough value to the product that it will make sure they continue to lead the segment by getting that device to the market earlier,” according to the report.

Further, the report suggests that Microsoft is unlikely to unveil the device this year or next year.

Meanwhile, Microsoft continues to improve version one. It is investing heavily into improving version one with updated software.

Microsoft HoloLens is a pair of mixed reality smart glasses designed to run the Windows Holographic platform, a mixed reality platform built on the Windows 10. It is a cordless, self-contained Windows 10 computer.