Project Morpheus, A Virtual Reality System Announced for PS4

With Project Morpheus and PlayStation Camera, games will immerse players in virtual worlds
Sony Computer Entertainment (SCE) has announced the development of Project Morpheus (Morpheus) - a virtual reality (VR) system that features a visor style head-mounted display and works seamlessly with PlayStation Camera to deliver a VR experience. Inertial sensors built into the head mount unit and PlayStation Camera track head orientation and movement so as the player's head rotates, the image of the virtual world rotates naturally and intuitively in real-time.
Furthermore, in supporting games, the player can use a PlayStation Move (PS Move) motion controller as an object, such as a sword. Morpheus will reproduce the player's hands and sword within the game so the player feels like they are physically fighting off enemies with their sword in the virtual world.
In addition to sounds coming from front, behind, left and right, Morpheus re-creates stereoscopic sounds heard from below and above the players, such as footsteps climbing up stairs below them, or engine noises of helicopters flying overhead. Sounds that players hear change in real-time depending on their head orientation.
The Morpheus dedicated SDK is currently under development and will become available when ready.