PlayStation VR (PSVR) is Sony's virtual reality system. It requires a PlayStation console to work. The PSVR head unit has much in common with PC-based VR systems like the HTC Vive and Oculus Rift. However, it uses a PS4 console instead of a VR-capable computer.
How to set up your Playstation VR
Since the PS4 is less powerful than VR-capable PCs, the PSVR includes a processor unit to handle 3D audio processing and other behind-the-scenes tasks. This unit sits between the PlayStation VR headset and your TV, allowing you to leave the PlayStation VR plugged in while playing non-VR games.
One of the key things about virtual reality is head tracking, which allows games to react to your head movements. PlayStation VR does this by using the PlayStation Camera, which can track LEDs built into the surface of the headset.
PlayStation Move controllers are tracked by the same camera, making them great for controlling VR games. However, you do have the option to use a regular PS4 controller for most games.