(Pocket-lint) - Facebook-owned Oculus VR is holding a keynote address, where Facebook CEO Mark Zuckerberg has introduced a VR headset that works without cables.

When it comes to virtual reality headsets, there are two categories: mobile VR headsets, such as the Samsung Gear VR, and tethered VR headsets with external tracking, like the Oculus Rift. Zuckerberg said, "We believe there is a sweet spot between these. A standalone virtual reality product category..."

This category would be high quality and affordable, and you can bring it with you out into the world. "We're working on this now," Zuckerberg added. "It's still early." While on stage, he played a video demo of the prototype product, which looks like a consumer version of the Oculus Rift, but it's wireless. 

On the back of the headset is a circular hub that could house electronics. We don't know much more, as the demo was short, and Zuckerberg didn't expand too much, but he did mention: "I think we all know where VR is going to be in 20 years... It's going to be the next major computing platform."

This new hardware project will sit between the existing Oculus Rift headset and Samsung’s Gear VR headset, which is one of Oculus' platform partners. The project hasn't been named and seems to work without cables, external PCs, and mobile phones. And it uses something called inside-out tracking.

It's worth noting that VR headsets like Gear VR lack positional tracking, so when you move around, the virtual world stays in one place around you. And that experience can be kind of jarring.

Watch the Oculus Connect 3 keynote live stream for more live updates.

Writing by Elyse Betters.