Intel has shown off a ground-breaking headset that can replace a room's pre-scanned furniture with more appropriate video game scenery in virtual reality.
The capabilities of the firm's Project Alloy headset, currently in development, were demoed at the CES tech show in Las Vegas.
Chief executive Brian Krzanich said Intel planned to license the technology to manufacturers by the end of 2017.
But one analyst said VR remained a difficult market to target.
The headset does not require a separate PC or a connection to a power source - both computer and battery are built in, noted Mr Krzanich as he introduced the latest prototype.
Two players in a mock living room demonstrated on stage how the headset could create a virtual replica of the room featuring scanned obstacles such as furniture.
Intel calls this "merged reality".
In the demo, the bookcases and coffee table were then replaced, digitally, by similar-sized scenery more suited to the game - a futuristic spaceship.
"It was certainly interesting," said tech analyst Brian Blau at Gartner, who also praised the freedom offered by an "all-in-one" headset without a cable.
However, he said it would have been even more impressive had the living room been scanned by the headset itself.
"They did say [the room] was pre-scanned, so I was a little bit disappointed by that."
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