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Tachikoma said:
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It does fit the definition, but VR has a long way to go.

Visual aspect is still lacking on a few points, resolution being a main one but also minimum/maximum brightness, you can for example look up at the sun in a morphesus/occulus game with no issue, needs a backlight passthrough for pixels to be a variable between 0 and 7200 lumens at least.

Next is that visual is only one piece of the puzzle, audio needs to be improved, thankfully were getting closer to a point where sound systems can emulate binaural conditions through software, when such systems can take into account the virtual geometry around you then we'll be set for that too.

Last but not least is highly unlikely going to be solved for a entry level consumer unit, would require multi axis tracking gloves and something similar to kinect to track body motion, and either suspension of the body or a rolling surface with partial weight suspension in order to allow free movement to effect the ingame avatar.

 

Without them, it meets the VR definition, but falls way short on the actual implamentation.

i won't argue that the current VR is perfect but neither was the ps1 era of 3D gaming.  it was awkward at first but still an amazing and new experience to see things in 3 dimensions instead of 2.  ps2 was really a refinement of those core ideas as developers learned more about what works and what doesnt. 

project morpheous is a gen 1 device.  it will get revised and improved as experience is gained but just having the world i'm playing in respond to the movement of my head is a massive leap in immersion to convince me i'm actually in this virtual world.  next gen will be much more refined but the core ideas are here and now.