Virtual reality
The 1990s saw the first widespread commercial releases of consumer headsets. In 1991, Sega announced the Sega VR headset for arcade games and the Mega Drive console. It used LCD screens in the visor, stereo headphones, and inertial sensors that allowed the system to track and react to the movements of the user's head. In the same year, Virtuality launched and went on to become the first mass-produced, networked, multiplayer VR entertainment system. It was released in many countries, including a dedicated VR arcade at Embarcadero Center in San Francisco. Costing up to $73,000 per multi-pod Virtuality system, they featured headsets and exoskeleton gloves that gave one of the first "immersive" VR experiences. "Computer Gaming World" predicted "Affordable VR by 1994".
Virtual retinal display
The VRD was invented by Kazuo Yoshinaka of Nippon Electric Co. in 1986. Later work at the University of Washington in the Human Interface Technology Lab resulted in a similar system in 1991. Most of the research into VRDs to date has been in combination with various virtual reality systems. In this role VRDs have the potential advantage of being much smaller than existing television-based systems. They share some of the same disadvantages however, requiring some sort of optics to send the image into the eye, typically similar to the sunglasses system used with previous technologies. It also can be used as part of a wearable computer system.
A Washington-based startup, MicroVision, Inc., has sought to commercialize VRD. Founded in 1993, MicroVision's early development work was financed by US government defense contracts and resulted in the prototype head-mounted display, Nomad.