The virtual reality headset is designed specifically for video games, featuring stereoscopic 3D and a wide 110 degree field of view.
Existing headset displays typically offer a 40 degree field of view, replicating a screen in front of the user. A 110 degree view gives the appearance of surrounding the user's natural field of view. It accomplishes the wide view through two screens, a 640x800 display for each eye, that combine for the illusion of a panoramic 1280x800 display.
The Oculus Rift also features low latency head tracking so that what appears on the display mimics the motions of the head with near 1:1 accuracy.
The Oculus team is seeking funding for the headset through Kickstarter, and reached its $250,000 (£160,000) goal in a matter of hours. It went on to surpass $1 million (£639,345) in funding after less than 48 hours, currently having raised almost $1,200,000 (£767,000) at the time of writing.
The Kickstarter campaign still has 27 days of funding remaining.
Much of the Kickstarter funding is coming from developers, who can secure an Oculus Rift development kit with a $300 donation.
The virtual reality headset has attracted a lot of attention from game developers, with Epic Games already confirming that its Unreal Engine will be optimized for the device.
Doom creator John Carmack has also given his support, announcing that Doom 3: BFG Edition will be the first Oculus compatible game available. He also revealed that Doom 4 is being made with the Oculus headset in mind.
There is currently no projected release date for the Oculus Rift, though it is expected to make an appearance at the Siggraph, GDC Europe, gamescom and Unite trade shows later this year.
Watch the Oculus Rift overview video below: