Project Morpheus' tracking feels on a par with Oculus, even taking into account the advances brought about by the implementation of Crystal Cove. That's no doubt thanks to the PlayStation Camera's input, and the latency seems impressively low when moving your head. Even better, it allows you full 360-degree movement, letting you look behind you - a factor that's exploited to great effect in Sony London Studio's The Deep.

There is one other setback to Morpheus right now, though it's one that's likely to be remedied throughout the development process. Motion blur is much more pronounced on Morpheus than it is on Oculus' DK2, and image quality is also noticeably not quite on par. Both are running at 1080p, but Morpheus' decision to go with LCD displays rather than the OLED used on Oculus hurts it a little - good thing, then, that Sony's already looking at exploring OLED for its own device.

Some other considerations from Martin:

There are still reservations, though - The Deep and Castle were both running on PS4, and as relatively non-interactive experiences they still offered an exciting insight into what's possible on Morpheus. More traditional games like Eve Valkyrie and Thief though - the latter sadly wasn't available to play at today's demo - are currently running on PC. Whether they can be replicated on console hardware given the increased resource demands of feeding both eyes individual images at high resolution remains to be seen, and in aligning itself with the PC Oculus has partnered with a platform that's only going to get more powerful by the year, whereas Morpheus is currently working on one that's fixed and could find itself rapidly outgunned by its partner.

It's quite clear that with the quality of Sony's Morpheus project that VR is the new video game battleground.