Holodeck?

[Longboard]

He mentions the Oculus Rift multiple times. Not sure if they are competing or working in tandem with the Rift.

http://failblog.cheezburger.com/share/62665217

[Zero]

Looks like he is simply utilitizing the Rift as the VR HMD for part of his holodeck experience.  At first I thought he was essentially adding a very sophisticated positional tracking to the DK1, but then he said that they are experimenting with manipulating the game world to trick you into remaining within the 10x10m holodeck area.  Sounds really cool!

[Tbone]

There are a few groups working on stuff like this. Project Holodeck is the main one. Valve's VR Room is similar. The game design of keeping you walking in the same space had to be VERY specific.

Oculus has been looking at things like having an IR light projector to create a complete virtual room with very little equipment. No word as to whether it's viable.

Of course the big difference is the holodeck creates virtual objects around the user while this VR simulates the world without affecting any other senses or changing anything in the room itself. That said, it's apparently VERY compelling.