Why it matters: Project Santa Cruz is now Oculus Quest, Facebook's next standalone VR headset. It's the last of Oculus' first generation headsets which means future hardware will likely be far more advanced and have a more social slant.

Facebook-owned Oculus VR during the keynote of its Oculus Connect conference on Wednesday announced the company’s next headset. The Oculus Quest, showcased by Mark Zuckerberg, is an all-in-one VR gaming system that sheds the physical tether (there aren’t even any external sensors).

Think of it as a step up from the Oculus Go. Whereas that device offered three degrees of freedom tracking, the Oculus Quest affords six degrees of freedom and packs the hardware necessary to deliver a compelling VR experience without needing to be attached to a PC.

Zuckerberg said that with the Quest, they have completed the first generation of Oculus products. “From here we're going to make some big leaps in tech and content for future generations of each of these products.”

This is perhaps the most interesting admission of the day as it sounds like Facebook is finally moving on to its true plans for virtual reality. After all, few believe the social networking giant bought the tech with the sole intention of just using it for gaming.

Oculus Quest arrives next spring priced at $399 and includes dual wireless handheld controllers. There will be more than 50 games available at launch including popular titles like Robo Recall, Moss and The Climb. Experiences designed for Quest and future headsets will also be compatible with the original Rift, we're told.