The Japanese Playstation site has also mentioned new MOVE controllers are being prepared with better motion controls and a slightly different design.

Is there a new PlayStation VR model? How is it different?
A hardware update to PlayStation VR is being prepared. The new version, model number CUH-ZVR2, features an updated design that enables the stereo headphone cables to be integrated with the VR headset and a slimmer, streamlined connection cable. There’s also an updated Processor Unit that supports HDR pass through, enabling users to enjoy HDR-compatible PS4 content on a TV without having to disconnect the Processor Unit in between the TV and the PS4 system. This function can be used only when the VR headset is turned off.

When will the new PS VR model become available in North America? How much will it be?
We will share details on the launch timing in North America at a later date. The pricing of the PS VR bundles will remain the same.

How can I distinguish between the old PS VR headset and the new one when I’m purchasing?
The packaging for PlayStation VR will change slightly when the new model hits stores. To differentiate, look for the model number printed on the box. The previous PS VR’s model number is CUH-ZVR1, and the new PS VR’s model number is CUH-ZVR2. Also, the product image on the packaging will be updated to show changes on the new model, like the integrated headphones on the VR headset.

If I already own a PS VR, can I swap out my old Processor Unit with the updated one?
Because the cables of CUH-ZVR1 and CUH-ZVR2 are different, you cannot swap the Processor Units.

Are the PS VR games I already own compatible with the new model?
Yes, all PS VR games are compatible with both PS VR models.

Image of the new PSVR:

The update is nice, personally I believe most want the 'price drop' update. It is worth it at this price but still a lot of money for some.

I reckon this model is likely cheaper to make so I'm guessing a price drop is also in the offing.

An upgrade only 1 year after the initial launch? Great, now do the same thing with the things that actually matter, like your console.

Make it 30,000 yen  please.

Looks like I will be handing my old headset over to my brother and picking up this model. The HDR pass through is going to be very nice. I have probably swapped HDMI cables 500 times in the last year. Will be great to be able to go from playing Horizon: The Frozen Wilds or Battlefront in HDR, and jump straight into Gran Turismo Sport or Bravo Team, without having to go behind the TV swap connections.

They do release yearly updates to the consoles. We had PS4 CUH-1000 in 2013, CUH-1100 in 2014, CUH-1200 in 2015, PS4 Slim CUH-2000 and PS4 Pro CUH-7000 in 2016, and CUH-2100 and CUH-7100 models are hitting the stores right now 2017.

A lot of the times the 100 series improvements are very minor, but the CUH-1200 saw a significant power and noise decrease over the 1000 & 1100 models thanks to improvements in RAM. I would guess the improvements will be small this year, with more noticable improvements in 2018, followed by a CUH-3000 and CUH-8000 in 2019, and hopefully a CUH-1000 PS4 Premium.

Nice convenience update, not enough to buy a new one though. I did just buy a 4K HDR tv this weekend but since it's in a different room than where I prefer to play VR games, HDR pass through won't help. I still need to bring the console over to the tv anyway. I don't play with headphones either.
What I would like is a move hw update, at least add analog sticks to those suckers. Or the option to add a second camera for improved tracking.

Btw, any recommendations what looks best in 4K HDR on the pro?

Aww man. I'd love the HDR pass through option. It's crazy that they overlooked it in the first place.

That's more like an update than an upgrade

Normal games? For my money, Rise of the Tomb Raider and Horizon Zero Dawn. Sometimes I just look at those two in awe.