Xbox One games come to Oculus Rift – see the video

Oculus has announced a new app that will allow Xbox One games to be played on its virtual reality (VR) Rift headset.

The app streams games from the console and displays them as a rectangular screen on the headset. Players can then adjust the size and depth of the streaming window and also curve the centre for a more natural experience.

All Xbox games are compatible, as well as Xbox 360 titles featured in the backwards compatibility programme.

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Xbox's Major Nelson tweeted a video demonstrating Forza Horizon 3 being streamed. The video also reveals the streaming window sits in front of three interchangeable backgrounds.

While it's far from the full virtual reality experience offered by Sony's recently launched PlayStation VR, the Oculus app marks Microsoft's first steps into the platform for its Xbox One console.

In October, Microsoft unveiled its plans to launch an affordable VR headset next year that may eliminate the need for external trackers. Priced at around $299 (£245), it will undercut the PlayStation VR by more than £100, although the firm has yet to announce whether it will be compatible with the Xbox One.

Microsoft has also invested heavily in augmented reality technologies through its HoloLens, which launched in the UK earlier this year for £2,719. The HoloLens mixes a virtual interface with the real world, layering visual data over real environments.

The Xbox One streaming app is available now and can be downloaded for free from the Oculus store.