Morpheus doesn't stand a chance. It's a half-assed attempt at VR on a machine that is far too weak. It's going to be a failure in the long run.
Oculus isn't screwing around. Not only do they now have all of the leaders of the VR industry working for them, Facebook's acquisition has allowed them to build the entire device out of proprietary tech that is tailored specifically for VR. No more scraps from the smartphone industry. Also the available SDK is already being integrated into dozens of games and even allows users to custom tune unsupported Rift games to output correctly for Rift.
It's not even a competition. Short term Morpheus will see limited success mainly because Oculus Rift is targeting the high end gamers as they don't want to compromise on the VR experience while anybody with a PS4 will be able to use Morpheus with the limited selection of games on the PS4 that will support it. Sadly though not many will as VR is incredibly demanding and the PS4 just doesn't have the hardware. Expect only a handful of games, mostly smaller titles with much lower quality graphics to support it. Over time more and more people will have the PCs that can run Rift games and the Rift's software library will be much larger and will continue to grow. We'll also see Rift, given the fact it's not tied to a PS4, in a lot of non-gaming applications as well as a lot of tourism and entertainment industry events.
Long term Oculus Rift will be the leader of the VR industry.
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