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Quest will be bundled together with a new Touch controller that looked nearly similar to existing Touch controllers for Rift. The Quest headset comes with Touch controllers, and will launch with more than 50 games this spring. The new system is called the Oculus Quest, and it's another standalone VR headset, much like its immediate predecessor the Oculus Go. It also has support for what's being called 360 degree audio, which Facebook CEO Mark Zuckerberg says is better still than the audio options present in the Oculus Go.

Zuckerberg eventually hopes to have one billion people using virtually reality, but he acknowledged Wednesday that Facebook remains far from that goal.

We've heard a bit about Oculus' Project Santa Cruz over the past couple of years.

That being said, the Quest features a new tracking system that company called Quest Insight. Facebook is still quite tight-lipped about the new hardware, though the company says the new Quest headset will feature the same 1600×1400 resolution display per eye. The Oculus Rift has to be connected to a powerful PC, which drives up cost, and it requires external sensors to enable 6DoF tracking.

Unfortunately, during the Quest's announcement at Oculus Connect 5, Zuckerberg didn't mention what kind of internals or optics the Quest is packing.

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Also in contrast to the Go, the Oculus Quest can run both mobile and PC VR games.

Zuckerberg said that the new Quest device represents the completion of Facebook's family of VR headsets, which includes the Rift and Go headsets.

The demo made it clear that Oculus is approaching mixed reality from the VR side, in contrast to MagicLeap, which is approaching mixed reality from the augmented reality side.

Oculus vice president Hugo Barra said Quest combined the capabilities of Rift and the portability of Go, the current headgear in the company's lineup, with a strong focus on games.