Project Morpheus.
'We believe Morpheus will further enhance PlayStation'. It'll work alongside the camera, and Move.
The current dev kit (tentative) has a 1080p display, 90+ degree field of view.
Tracking builds on PS Move and DualShock 4 technology, "supports forward prediction." Position and rotating head tracking: 1000HZ, 3 Meter Working Volume, Full 360 Degrees
PS Move's technology is being used in Project Morpheus to help with tracking. PlayStation Camera on PS4 is also essential. "It's almost as if it was designed for VR," he said with a wink.
They're using the same tech as PlayStation Move - with a lot higher rate sensors, and the PlayStation Camera.
DualShock 4's sensors and light can be used in conjunction with Morpheus. PS Move may also prove essential.
They want it to be able to be picked up and used with no issues. Pick it up, put it on, you're in VR. Put it down, you're out. No issues.
Finally, we've come to Content. "At Worldwide Studios, we have a really good team." Sony's own studios will "seed" the VR landscape, but they need other devs, hence they're here at GDC.
Current focus is on PlayStation - no talking about how this will, or could, work on PC.
Source