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It was thought that Valve was building its own VR headset and even rumored that its current product is way better than the Oculus Rift. Turns out that's not the case. During the second day of Valve's Steam Dev Days conference, the publisher announced that it is "working together with Oculus to drive PC VR forward," adding that the two companies have collaborated on tracking.
Valve also said that it has no plans to release its own VR hardware, though left to the door open to the possibility by saying that decision "could change." For now, however, Valve's interested in backing frontrunner Oculus Rift, which has been making headlines ever since its successful Kickstarter campaign.
That's not to say Valve hadn't been working on a VR headset. According to Eurogamer, there were a few developers at Valve that were developing a head mounted display, but they were let go. Those same developers later reemerged with their own set of VR glasses called CastAR.
Looking ahead, Valve believes it's possible for a VR headset to have 20ms latency, 3ms pixel persistence, 95Hz refresh rate, 110-degree field of vision, 1,000x1,000 resolution per eye, and high quality optics with capable tracking by 2015.