That's a crucial difference between Morpheus and the PC VR systems. This is a solution built for a console audience with the living room in mind. Sony's tech aims to invite in an audience, and get them involved in gameplay. As Shuhei Yoshida explains, it's an important feature borne out of a collaboration between hardware, R&D and in-house game developers - an important advantage Sony has over its competitors:
"Like you're probably aware, we have a cross-functional, international team: the hardware guys in Japan, the R&D teams and game teams globally... That undistorted, regular image - the idea came from the game teams. Our teams wanted to create social game not unlike something similar Nintendo is doing with Wii U. So one person might be wearing the headset, while another person might be participating, watching on the large-screen TV. So that idea came from the game teams and the hardware team implemented it."
Indeed, Sony's entire push into the world of VR is a direct result of the ideas generated by the R&D and game development teams. The rise of Oculus and PC VR actually happened in parallel with internal demos and discussions at Sony.
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Actually, this is the first time I have even considered this analogy, but all of a sudden, it makes sense, all of a sudden, I can see the implications for game design (at the very least on console). For the first time, I am excited at the prospect of VR, because I see it as something that could legitimately impact game design for the better. Now whether Sony can pull it off with Morpheus or not remains to be seen, but I will be watching it very intently.
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