The new Morpheus prototype features a number of improvements over the original version that Sony demonstrated at last year's GDC. The screen has been upgraded to a 5.7 inch OLED display, which greatly reduced the amount of motion blur and latency that we experienced when we demoed the new version. Sony says that Morpheus will support graphics that output at 120 frames per second, and added that PlayStation 4 consoles will be able to natively support that output.

Sony Worldwide Studios chief Shuhei Yoshida said that the prototype represents the "near-final" version of Morpheus.

"What we are showing is a handmade prototype," Yoshida told WIRED at the event, adding, "The guts are almost done." Yoshida says Sony will begin to loan these prototypes to developers so they can begin creating Morpheus games in April, but they are not the "final final" kits.