Sony unveiled its long-rumored virtual reality headset on Tuesday at the 2014 Game Developer’s Conference in San Francisco. Shuhei Yoshida, president of Sony’s Worldwide Studios, stood in front of a packed auditorium of game developers and said: “Virtual reality is the next innovation from PlayStation that could shape the future of video games.”

Code-named Project Morpheus (a name Yoshida admitted the company only settled on within the past few weeks), the headset will work with Sony’s PlayStation 4 video game console (see “Xbox vs. PlayStation: Beginning of the End for Consoles?”). The headset, which Sony said has been in development for three years, will use inertial sensors built into the head-mounted unit and the PlayStation camera to track a user’s orientation and movement. As the player’s head rotates, the image of the virtual world rotates in real-time.