Microsoft unveiled its latest virtual reality device at a Windows event on Oct 27. The new headset, priced at $299, comes with built-in tracking sensors.

Microsoft did not provide many details about the product, but it is believed that headsets were manufactured by the company's partners such as HP, Dell, and Acer.

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The main attraction of the devices is their 'inside-out' six degrees of freedom tracking. Six degrees of freedom is the term to denote tracking which can differentiate between moving through space and turning of one's head. This feature is currently available only on high-end VR headsets such as Oculus Rift. It also affects the portability of the VR system.

However, with inside-out tracking, Microsoft may be able to solve this issue. According to Microsoft executive vice president Terry Myerson, the new feature may eliminate the need for a dedicated VR room. Inside-out tracking will use in-built sensors to detect the movement of the user and adjust accordingly. Currently, Rift uses an external camera for this purpose.

Microsoft claims that these headsets are the only headsets with inside-out six degrees of freedom sensors. However, the company did not provide details about the technology behind the headsets. The line of headsets is likely to hit the market in 2017. Microsoft also mentioned that unlike Vive and Oculus Rift, the headsets would be able to work with "affordable laptops and PCs."

Microsoft currently offers an augmented reality headset HoloLens, which incorporates inside-out tracking technology. It works by combining holograms and reality. The headset is priced at $3,000 and offers loading of 3D objects.