Oculus has been in the news for a while now, really picking up speed about a year ago with their first prototype of the Oculus Rift shipping to some developers.
The Oculus Rift is a virtual reality headset that allows you to look around in a game with the same, natural head motion that you would use to look around in the real world. The first prototype was very promising, but had some downsides such as low resolution screens which made what you see look like you were looking through a screen door. New, higher definition prototypes have been tested and, that issue at least, will definitely be solved before the device ships to consumers.
More improvements were made with the new Crystal Cove prototype they showed at CES this year.