Sony has announced its own entry into the virtual reality arena with Project Morpheus.
The in-development headset will function alongside the Playstation camera and PS Move controllers.
The virtual reality headset is destined for use with the Playstation 4 and is currently only in a prototype stage with Sony working on further development for a commercial release.
The head-mounted display will work with the Playstation camera and the PS Move motion controller to replicate head movements and physical actions made with the players hands in compatible games.
Project Morpheus will also use 3D audio technology to allow sounds to appear as if they are coming from different directions including above and below.
The prototype was shown off at GDC running Eve Online spin-off Valkyrie, the new Thief and a couple of tech demos developed by Sony. A developers kit is also being developed but is not yet ready for distribution.
'Project Morpheus is the latest example of innovation from SCE and we're looking forward to its continued development and the games that will be created as development kits get into the hands of content creators,'
said SCE Worldwide Studios president Shuhei Yoshida.
Sources talking to the Wall Street Journal also report that Microsoft is working on a virtual reality device of its own and has filed a patent for the project.