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Sony Corporation (SNE - Snapshot Report) believes virtual reality (VR) may decide the future of video gaming. Thus, the recent unveiling of a prototype VR headset for PS4 console, codenamed ‘Project Morpheus’, is another affirmation. Unveiled at the Game Developers Conference 2014, this VR headset is the first development kit for the massively-popular console system.

Sony’s VR headset ‘Project Morpheus’ offers a 5-inch LCD panel with 1920x1080 resolution that yields 960x1080 pixels per eye with a 90 degree field of view. Additionally, the device has a built-in accelerometer, gyroscope HDMI (high-definition multimedia interface) and USB connectors. The device gives an impression to that the wearer that he has ventured into a simulated 3D world.

Project Morpheus’ built-in sensors will use PS4 Camera and will create the gamer’s perspective in the game. It tracks the movement of the player’s head. So, the virtual gaming world will be viewed and move exactly in the direction in which the gamer moves his head. It will ensure a great visual and real experience. Additionally, the device will support 3D audio technology, re-creating stereoscopic sounds heard from every angle of the player, creating a highly realistic audio environment.

However, the release date and price of Project Morpheus has been kept under wraps. It is available for demonstrations now at the conference. The device will compete with other VR devices such as the Oculus Rift VR headset, currently being developed by California-based startup Oculus VR. Both devices are in development stage and will use 1080p screens and similar head-tracking technologies.

The company already has a sizable lead in the battle for top vendor in the current video game console generation. According to the company, last month, Sony's PS4 global sales hit 6 million units on a strong Japanese launch. The PS4 sales outperformed Nintendo's (NTDOY) Wii U and Microsoft's (MSFT - Analyst Report) Xbox One by a healthy margin. We believe Sony’s new VR technology for PlayStation 4 may extend its lead even further in the near future.

Currently, Sony retains a Zack Rank #3 (Hold). Another stock that has been performing well and is worth considering is Harman International Industries (HAR - Analyst Report), carrying a Zacks Rank #1 (Strong Buy).

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