Latest VR prototype from Oculus is a (360°) head-spinner

Oculus has unveiled a new prototype of its virtual reality headset - but the company still isn't ready to release a consumer edition.

The headset, intended for creators of VR experiences, is nicknamed Crescent Bay and features a higher resolution and refresh rate, integrated headphones and 360-degree head tracking.

"That was not easy," Oculus CEO Brendan Iribe told developers on Saturday. "It's still not perfect. None of this is perfect yet, but it's much, much better."

The headset covers a user's eyes and can create virtual worlds that react to head movement.

The original prototype of the Oculus Rift headset was unveiled in 2012 and has received considerable attention from film and video game makers. Oculus released a second prototype to developers this year. Iribe said 100,000 development kits had been shipped to 130 countries. "I never expected it to go this quickly," Iribe said. "None of us did."

The Irvine, California-based company was acquired by Facebook this year for US$2 billion. Iribe said Oculus staff had doubled in the six months since.