Motion tracking

Tracking is how the hardware knows where the position of your hands and head are in the real world, once it knows that it can translate it into the virtual world to give you a convincing presence mimicking your every move exactly. 

There's many headsets with varying ways of tracking. Valve's lighthouse tracking found in the HTC Vive, is the most accurate solution under optimal conditions. It is however, more sensitive to its surroundings, such as reflective surfaces. It is also more complex to set up and maintain. 

The lighthouse tracking uses two mounted base stations in a room as anchor points that sends out laser information that the headset will detect. Another form of tracking is inside out tracking, it uses cameras mounted on the headset itself to analyze and recognize the world around it to know where it is positioned. Inside out tracking is not as accurate (especially not for your hands), but depending on use case the difference isn't that drastic so it might be worth having to do less setup and maintenance.
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