The headset is apparently tracked by the PS4's PlayStation Eye camera, and those with first-hand experience suggest this makes it even more accurate than Oculus Rift. At present, however, there are some aesthetic challenges - the prototype apparently has "ping pong balls" attached to it so the PlayStation Eye can read it better.
As CVG reported on Tuesday, Sony intends to sell the head-mounted display separately from PS4, like with the new PlayStation Camera, in order to keep the baseline PS4 price as low as possible.
The company is weighing up whether the PS4 device should be pitched as a key differentiator for the console or a non-essential add-on. Evolution Studios is currently working with the headset to simulate a cockpit view on PS4 title Drive Club.
Sony has announced a PlayStation 4 release date of November 15 in the US and November 29 in Europe. The console will be available in 32 countries this holiday priced at £349 / €399 / $399.
PlayStation UK boss Fergal Gara said last month that Sony is struggling to satisfy pre-orders and is anticipating a PS4 sell-out at launch.