Sony unveils new virtual reality headset for PlayStation, which will compete with Facebook's Quest

It comes as companies increasingly bet on a digital feature, heating up competition in the growing space.

Sony unveils new virtual reality headset for PlayStation, which will compete with Facebook's Quest

Sony PlayStation VR2 headset

Sony

Sony unveiled its PlayStation VR2 virtual reality headset on Tuesday, as competition in the VR space continues to heat up.

Facebook-parent Meta, for example, has devoted $10 billion over the next year to shift its focus to the metaverse, a digital world where it hopes people will work and play using its $299 Meta Quest 2 headset. But companies like Sony may attract people who want a headset that seamlessly connects and plays the games they already have on their PlayStation consoles.

Sony's VR headset requires a PlayStation to run, for example, while the $299 Meta Quest 2 can connect to a computer for power-intensive gaming applications or can run wire-free for less intensive tasks. Sony hasn't announced pricing for the headset yet, but it looks similar to the Meta Quest 2 and, like Facebook's headset, comes with two controllers that you use to navigate in VR.

Apple is also expected to launch a virtual reality headset in the coming year, according to reports.

"Our goal is to create a headset that will not only become an attractive part of your living room decor, but will also keep you immersed in your game world, to the point where you almost forget you are using a headset or controller," Sony executive Hideaki Nishino said in a release.

The company said the new product will include a lens adjustment dial, so users can match the lens distance between their eyes to optimize their view. It has a slimmer design than the last version.

"When PS VR2 launches, it'll take a giant leap forward in the way we play games in virtual reality," Nishino said, noting that the new headset will support sharp 4K graphics, head-tracking and more.

Subscribe to CNBC on YouTube.