At CES 2011, this was demoed as a mere concept, now it’s scheduled to be a real shipping product.

• Twin 720p OLED displays. Supposedly this provides higher image quality than traditional LCD displays.
• Optical lenses give the viewer a widescreen 45-degree horizontal viewing angle. The lenses simulate a 750-inch virtual screen with a virtual viewing distance of approximately 20m (quoted from Sony PR, yes they are mixing metric/English units).
• Stereoscopic 3D support that works at full brightness that is 100% crosstalk free.
• HDMI in and HDMI passthrough
• Requires wired connection to separate processing box.
• Integrated Virtual Surround Sound Audio.

IGN has an excellent hands on preview.

A few comments:

• This is a large advance over previous displays of this type.
• The obvious missing feature is head tracking. I assume the hold up is there are no game systems or other devices that currently use head tracking data.
• Ultimately, I’m hoping Sony creates a PlayStation platform dedicated to the VR input/output form factor.
• On PlayStation’s idea sharing site, where users can submit PlayStation wish list ideas and vote on them, I submitted this concept as an idea (with head tracking) several times in 2010. For some reason, the idea never made it through their audit process, never got published, and my support requests were ignored. Obviously, they were working on this exact idea as I was submitting it, so I wonder if they blocked it purposely.