The PlayStation company also flashed 13 familiar third-party publishing and developer tool creating partner logos, including ones from heavy-hitters like Epic Games, Crytek, Autodesk and Havok. We're likely to see through the eyes of more game characters down the line.
More than just games
Beyond first-person perspective video games, Sony is partnering with NASA's Jet Propulsion Lab in order to send gamers to Mars via the Curiosity Rover.
This technology could give PS4 a distinct advantage over Xbox One thanks to its virtual tour of new worlds that would otherwise require players to go through astronaut training and warp 50 years in the future. It's a new wrinkle to the constantly shifting PS4 vs Xbox One debate.
Sony has actually designed head-mounted displays before Project Morpheus including the personal 3D viewer, the Sony HMZ-T3W. But it lacked the head-shifting content that turned with head movement.
Of course, now that Oculus Rift has peaked gamers' interest, Sony is ready to take its existing form factor to another level.
Project Morpheus price, release date
It's up to developers to create these new experiences with Sony's overused phrasing "sense of presence," but it's also up to the electronic manufacturer to make the Project Morpheus price affordable.
Morpheus is currently in prototype form, so there's no price or consumer release date tied to Sony's VR headset. That being said, it's hopefully going to be cheaper than its past hardware in this category.
The HMZ-T3W costs $999 (£1,299, about AU$1,094), while the lower-end HMZ-T2 costs $799 (about £999, AU$875), all of which seem too pricey for gamers for one reason: Oculus Rift.
Oculus Rift, by contrast, is $300 (about £180, AU$329) for the developer unit and although the consumer version price hasn't been announced yet, the startup company claims that it'll be "affordable" too.
Sony is no stranger in making its video game hardware more accessible via low price points. It undercut the Xbox One price for a considerable advantage on stores shelves at launch.
At the right price and with a solid performance, Project Morpheus could give Sony another big advantage over Microsoft's Xbox One, and it looks like we'll find out if it's up to the task very soon.