While we were fairly impressed with Oculus' newest VR headset, it wasn't the only company showing off a head-mounted display this year at CES.

As Sony's newest update to its head-mounted display line, the HMZ-T3Q positions a 720p OLED display in front of each eye – which is approximately equivalent to watching a 750-inch screen from 65 feet away. Sony's line of HMZ headsets have traditionally been used to create cinematic experiences and have come with an upscale piece tag of over $1000. However, unlike previous headsets, Sony's new model allows for head tracking similar to the Oculus Rift.

We strapped on a prototype while at CES and went for a virtual motorcycle ride. The headset is comfortable and the screen display looks good. The system's head tracking also achieves a very low latency, which helps simulate real lifelike motion, but it also lacks some of the positional tracking that we demoed using the Oculus Crystal Cove prototype. The one advantage that the HMZ-T3Q has over the Oculus is that it is being designed to run wirelessly using internal batteries.

Sony says that the new display will be compatible for gaming, but we didn't get to test it out using any games (Sony only had a prerecorded racing video shot using a rounded camera allowing you to look 180 degrees). If Sony can continue to improve the head tracking and convince developers to design games that support this product then they might have a system that can compete with the Rift, but Sony might also have to drop the price tag to remain competitive.

The HMZ-T3Q is still in the development phase, but we'll keep you informed as we learn more about this futuristic piece of tech.