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CDiablo said:
What I am curious is how this will play PS4 games without them being crippled. You typically want games to run at minimum 60fps and more optimally 120fps to have a smooth experince. The video card will need to run at double horizontal resolution(I actually may be wrong about this). 3840x1080 for a 1080p experience, 2880x900(p) or 2560x720(p). I dont think there will be any AAA games running on this thing, mostly indys. Occulus rift users have already run into this problem. If I am right you will mostly see game that look like they are running in 720p 30fps for retail games, which isnt too bad. I dont think the current consoles have the horsepower to do the VR tech justice.

As far as I know, this is not quite right. Both Morpheus and Oculus use a single 1920x1080p display for both eyes (=960x1080 pixels per eye), so there's actually not more pixels to be computed than for any other game running at 1080p at the same framerate. The additional graphics computations for Project Morpheus are comparable to adding a two-player horizontal split-screen mode to a single-player game.

Graphics-wise, VR still has lots of room for improvement in the next decades, but even the experience on current, low-resolution hardware provides such a great experience that it will become a huge hit.

p.s.: Does anyone else feel that the demonstration at this Jimmy Fallon show was rather pointless, because they didn't explain anything, especially what the headset even does? I think someone who's never heard much about Virtual Reality wouldn't really understand what the demonstration was even about. But I guess that's a general problem, you simply can't demonstrate things like "immersion" on a typical TV screen. Virtual Reality will become big by personal experience followed by enthusiastic word-of-mouth.