crabel writes "The Oculus rift prototype Crystal Cove shown at CES uses a camera to track over two dozen infrared dots placed all over the headset. With the new tracking system, you can lean and crouch because the system knows where your head is in 3D space, which can also help reduce motion sickness by accurately reflecting motions that previously weren't detected. On top of that, the new 'low persistence' display practically removes motion blur." The new low-persistence AMOLEDs also achieve 1920x1080 across the field of vision. Reports are that immersion was greatly enhanced with head tracking.
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