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Here is a gif, that shows a few of the things that Oculus is experimenting with.  Some of these things we can certainly expect to see in the second generation of headsets.

A lot of these things we are already seeing with current headsets:

Larger FOV: This is pretty explanatory I think.  

Variable Focus Lenses

Inside Out Tracking

Markerless Body Tracking

Gloveless Finger Tracking

Face Tracking

Not in the video:  Eye Tracking.  The Fove has supported this for a while.  

Not in the video:  Wireless:  The Vive now has a wireless pack that can be purchased.

This was the 5 year plan for VR:

And most recently, Abrash has said that the company has been progressing faster than anticipated in reaching these goals.  

On the software side, Valve is making VR games:

Last edited by the-pi-guy - on 24 June 2018