Oculus, the VR firm bought by Facebook, finally revealed the details of its groundbreaking virtual reality headset at an event in San Francisco.

The consumer version of Oculus Rift will be launched early next year, and will use Microsoft's Xbox One controller, and be able to stream Microsoft games alongside its own VR games.

The firm said it will cost around $1500 when it goes on sale - although that price includes the high powered computer needed to 'drive' the headset.

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Brendan Iribe, the CEO of Oculus, unveiling the headset at an event in San Francisco

The firm also showed off VR handheld controllers that allow users to interact with the virtual world easily.

OCULUS RIFT SPECS Lightweight headset is work like a baseball cap Each eye has its own screen Headset has built in headphones Will use Microsoft's Xbox One controller Comes with its own app store Facebook has confirmed that its Oculus Rift headset will cost around $1500 when it goes on sale - although that price includes the high powered computer needed to 'drive' the headset. Pre-orders will open later this year. Advertisement

'Three years ago this August, we started a kickstarter.' said Brendan Iribe, the CEO of Oculus.

'We wanted to transform the way we experience entertainment.

'There's been something missing from gaming - its been trapped behind a 2D display, your brain knows your in a living room, playing on a TV.

'You don't feel scared, its on a screen.

'VR enables us to deliver anything, anywhere. For the first time finally we will be inside the game - this will change everything.'

The new design is described as 'really lightweight'.

It has a built in strap, and headphones to create a 3D audio effect.

'The goal is that you put it on, and it disappears.'

The firm is partnering with Microsoft for the gadget, and will use its Xbox One controller.

The Rift will also be able to stream Xbox One games to the Rift, Microsoft's Phil Spencer said.

The firm also said it was developing alternative ways to control games, believes to include hand tracking.

Palmer Luckey, the founder of the firm, revealed the firm has also developed Oculus Touch, a wireless controller.

One part is felt in each hand,and they include a small joystick.

Each has sensors, and can give haptic feedback to users and even track their fingers to recognise gestures such as pointing.

'We've been working on VR input since the first days.

'We see it evolving, there will be different inputs for different games.

'What about future games? I've seen thousands of people inside the Rift, and the first thing they do is reach out.'

The firm is also developing its own games and even films for the system.

'40 years Star Wars came out,' said Jason Rubin of Oculus.

'But there's been a window we can't step through - VR lets you create worlds that feel real.'

The final design of the Oculus Rift headset, which will go on sale early next year. It has a screen for each eye, and built in headphones for a 3D audio system.

The headset has two separate screens, one for each eye

Anna Sweet of Oculus said

'Virtual reality is going to inspire a whole new generation of developers. we are investing $10m to develop games.'

'The Rift just works out of the box,' said Nate Mitchell.

Users will first see an app called Oculus Home, which will let them see their own games, and buy more in an app store.

Iribe revealed the pricing at the Code Conference earlier this year, the first time the firm has discussed it.

He said he hoped it would soon drop to $1000, and as said the firm is working on a way for users to interact with the virtual world - which could be a joystick or hand tracking system.

Users will be able to use new hand tracking joysticks to interact with the virtual world

The new Oculus Home, which users will see when they first put the headset on

'We are looking at an all-in price, if you have to go out and actually need to buy a new computer and you're going to buy the Rift … at most you should be in that $1,500 range,' Iribe said onstage at Re/code's annual Code Conference in Rancho Palos Verdes, Calif.

Over time, though, he expects the 'form factor to get down to sunglasses,' and the supporting technology to get cheaper.

Iribe also said that there were several firms pioneering the space - with phone makers like Samsung and HTC leading the pack.

'It's such an early day that we view everybody as pioneers,' Iribe said.

'VR is going to be defined over the next several decades.

The headset has a screen for each eye

Eve Valkyrie, one of the first games for the Rift, will allow poeple to pilot a spaceship

'Think of the first Apple II being shipped in 1977. It took almost a decade for it to land in my school where I could see it.'

The Rift is one of the most anticipated gadgets since the iPhone, and one that could change the way we interact with computers.

Oculus, the firm acquired by Facebook for $2bn, has finally revealed its first consumer headset will go on sale next year.

'Extremely excited to announce that the Oculus Rift will be shipping Q1 2016!' tweeted Nate Mitchell, vice president of product at Oculus VR, which Facebook bought for $2bn in 2013.

'We can't wait to get it in your hands,'

It also has a small button to alter the depth of the images, which users can customise

'Today, we're incredibly excited to announce that the Oculus Rift will be shipping to consumers in Q1 2016, with pre-orders later this year,' the firm revealed in a blog post.

'The Rift delivers on the dream of consumer VR with compelling content, a full ecosystem, and a fully-integrated hardware/software tech stack designed specifically for virtual reality,' it said.

The social network has started building virtual reality versions of its apps and the company's head of product imagines a world where it could become as common as sharing a post.

However, until now the firm has only revealed prototype devices - some of which it even sold to developers.

Oculus CEO Brendan Iribe told the conference We are looking at an all-in price, if you have to go out and actually need to buy a new computer and you're going to buy the Rift, at most you should be in that $1,500 range.'

'The Oculus Rift builds on the presence, immersion, and comfort of the Crescent Bay prototype with an improved tracking system that supports both seated and standing experiences, as well as a highly refined industrial design, and updated ergonomics for a more natural fit,' it said.

'In the weeks ahead, we'll be revealing the details around hardware, software, input, and many of our unannounced made-for-VR games and experiences coming to the Rift.

'Virtual reality is going to transform gaming, film, entertainment, communication, and much more. If you're interested in building a next-generation VR game or application, everything you need to start developing for the Rift is available at the Oculus Developer Center.'

E3 is just around the corner — this is only the beginning.

The final version of the Oculus Rift Virtual Reality headset. The consumer headset will go on sale early next year.

The system will include headphones to create a 3D audio experience, and an app store.

Following the acquisition of Oculus, Facebook's founder Mark Zuckerberg said: 'Imagine sharing not just moments with your friends online, but entire experiences and adventures.'

Mr Cox echoed this idea, adding: 'We're working on apps for VR. You'll do it. Beyoncé will do it,'

However, he said that 'we're a long way away' from the headsets being widely used so the app are 'a while' off from being released.

IS IT ANY GOOD? MailOnline has been using the latest version of the headset, the $350 DK2 version aimed at developers wanting to write VR apps. At first we were skeptical - the headset looks bulky, although it is surprisingly light when attached via straps. However, once you are immersed in a virtual world, doubts were quickly forgotten. The technology, still just a developer's version, is breathtakingly good. While the resolution still doesn't give the feeling of quite being in the real world, it does make you think you are actually in a virtual world. The number of demos and games is already growing by the day, and feature everything from virtual rollercoaster rides to being lost in space, all made more immersive with head tracking meaning the images moved perfectly as your head moves. It's not quite ready for primetime yet, but is almost there - and the Oculus Rift headset finally delivers on the long awaited promise of virtual reality. Advertisement

Facebook bought virtual reality startup Oculus VR for $2 billion.

Facebook's Chris Cox revealed the app plans Facebook has at Recode's Code Media conference in California earlier this year.

Facebook has been ramping up its virtual reality plans since buying the firm that makes the Oculus Rift headset in 2014.

Facebook has revealed it has started building virtual reality versions of its apps and the company's head of product imagines a world where it could become as common as sharing a post or photo. The social network didn't go into detail about exactty how the apps would work or when they will be released

It is only currently available to developers.

In total, the social networking company is aiming to add almost 1,200 new employees, and 54 of these will work exclusively on the virtual reality project.

The rest will help develop the firm's drone and global internet schemes.

The social network isn't the only company looking to lead this space.

THE FIRM FOUNDED BY A 15 YEAR OLD Palmer Luckey of Oculus 21-year-old Palmer Luckey began Oculus when he was just 15, working on prototypes in his parent's garage. He started developing his own head-mounted VR displays when he was still in high school. He was in college when he created the first prototype of a consumer-priced VR headset called the Oculus Rift - although he eventually left to work on the project full time. MailOnline met Luckey at the CES show in Las Vegas, where he showed an incredible amount of enthusiasm for the product. He said he believed the technology's time had come. The firm originally turned to Kickstarter to raise money, but has since raised funds from investors across silicon Valley. Facebook said when it bught the firm it was aiming to add almost 1,200 new employees, and 54 of these will work exclusively on the virtual reality project. Advertisement

Samsung has already unveiled its Gear VR headset, developed with Oculus and dozens of other manufacturers, including Google, HTC and others are also working on products.

Google's Cardboard project is a cheap, basic alternative, and even Apple is rumoured to be experimenting with the technology.

A patent awarded last week detailed a head-mounted iPhone virtual display.

It followed a similar patent awarded in December 2013, and a job listing posted in November advertising for an virtual reality engineer.