"None of this is perfect just yet, but it's a huge step forward," Oculus CEO Brendan Iribe said at the announcement. "It's a huge leap over DK2 [the most recent developer kit released for the second-generation Oculus Rift prototype, Crystal Cove.]"
There are major audio advances in the latest VR prototype from Oculus, including 360-degree tracking for a truly immersive experience.
It also comes with integrated audio for the first time, but it's still optional since many will want to use their own earbuds.
Much of the Oculus "Crescent Bay" software in Saturday's announcement was demonstrated using Unreal Engine 4, the latest engine from the Epic team.