Samsung could announce the Oculus Rift competitor this year in an effort to beat Facebook’s Oculus Rift and Sony’s Project Morpheus in the virtual world. Given Samsung’s propensity to compete in every conceivable product category, this isn’t too surprising.

The  virtual reality based headset will reportedly be used with Samsung’s Galaxy devices, much like its Gear smartwatches. Samsung has even shipped prototypes of the device to some developers already, according to a report in Engadget. Rather than being a PC or game console peripheral, Samsung’s headset links to a Galaxy phone to create its virtual environment. It’s a demanding device, though: The consumer version will require the power of next-generation flagship processors, the report states.

So far, there are no photos of the alleged prototype headset, but the report has a few details.It is said to feature an OLED display that is “as good or better” than the 1080p OLED in the latest Oculus Rift. The headset won’t run Tizen, the OS in the new Gear watches. Engadget predicts it will use a wired, rather than wireless, connection to minimize things like lag.It will likely have a wired rather than wireless connection to Samsung’s current smartphones and tablets

The virtual reality handset will be utilized for Android gaming also. Although we have got no details about any handset-compatible games. We can predict that Samsung looks to price its virtual reality handset competitively in order to win customers. The company has taken a somewhat premium pricing scheme with its Gear Fit fitness band and its Gear smartwatches. Sony’s Morpheus project is heading towards $500 pricetag and inorder to make inroads in the mobile virtual reality platform, Samsung might price its virtual reality handset anywhere from $250-$400 .

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