China is obsessed with VR, and Xiaomi is not about to be left behind.

The hardware giant revealed their first VR product on Thursday: a smartphone-enabled headset called Mi VR. True to Xiaomi style, the gadget is ridiculously cheap at 1 yuan a piece (about $0.20), but before you go scrounging through your spare change jar, itโ€™s unfortunately only open to some several thousand pre-registered beta testers who were savvy enough to sign up last week.

Itโ€™s an exciting (and predictable) step from the device maker, which is rapidly diversifying their product line away from the smartphones amid sluggish sales.

Smartphone VR headsets are a fairly straight forward venture, with many existing brands and knock-offs already available on the market at penny-pinching prices. Xiaomiโ€™s Mi VR offers a handful of nifty features that could put them ahead of other products if their final retail price is enticing enough.

While we werenโ€™t lucky enough to get our hands on one of the beta sets, Xiaomi says the Mi VR features a lycra coating for comfort, which addresses an issue that consumers have identified with cardboard and hard plastic models. It also uses a zipper to hold in the smartphone, instead of velcro or a snap latch. The company says they will also release the headset in several bold prints and colors.

So do you need a Xiaomi phone to use it? It appears not. The headset can be used with any phone between 4.7 and 5.7 inches, a Xiaomi representative confirmed to Technode. This means that the device will be compatible with a range of devices, including iPhones.

The company previously announced they would be partnering with Googleโ€™s Daydream VR platform, though Daydream-supported devices will come at a later date.

Samsungโ€™s Gear VR, which is widely considered to be the leader in mobile VR experiences, is only compatible with Samsung phones. Xiaomi has stamped down entry barriers โ€“ primarily price, to build out their ecosystem.

It will be interesting to see whether Xiaomi releases the headsets in a bundling deal similar to Samsung. The Korean smartphone giant sharply discounted their headsets when bought alongside a flagship phone, incentivizing buyers to join the Samsung ecosystem.

A Xiaomi representative told Technode that โ€œThe focus for now is to have [the] Mi VR app be an open VR platform allowing partners to join us, so we can create a more extensive library.โ€

Mi VR

Cate is a tech writer. She worked as a journalist in Australia, Mongolia and Myanmar. You can reach her (in Chinese or English) at: @catecadell or catecadell@ovau.ip-ddns.com

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