The Microsoft VR headset was unveiled for a price of $299, which is significantly lesser than the Oculus Rift's $500.

In 2015, Microsoft has envisioned the Oculus Rift as the default VR for the Xbox, said PCWorld. During the E3 event last year for instance, it was revealed that the Rift would come with an Xbox One controller. That seems like a sound strategy for the company as it won't have to realign resources to manufacture its own virtual reality headpiece.

Then the Microsoft VR headset for the Windows 10 was announced.

Anshel Sag, associate analyst at Moor Insights, told PCWorld that Microsoft has been looking at producing a VR headset within the $300 price range.

"Their biggest fear is missing this technology inflection and not being a major player like in mobile. That is why they partnered with Oculus early before they had a working headset design of their own," he said.

One of the innovations of Microsoft VR headset is what it calls "inside-out tracking." Unlike other headpieces, there's reportedly more freedom of movement. You can go anywhere in a reasonable space since the device can track your location. Nevertheless, HoloLens allows for even bigger movements for the mid-range price range, the Microsoft VR headset's tracking tech is impressive.

Right now, however, there's no word on what type of computer that can support the Microsoft VR headset. The demo used the Lenovo Yoga laptop, which uses the 7th Gen Intel® Core^TM i7 processor and 4K screen display.

There should be more news on the computer specs to support the Microsoft VR headset ahead of the 2017 release date.