Oculus Quest, which comes with touch controllers and does not need a PC to operate, will be priced at $399, according to the company.
Facebook Inc also plans to launch more than 50 games for the new headset.
Facebook Inc has invested heavily in VR hardware in hopes the technology, which offers a 360-degree panoramic view of faraway or imaginary spaces, will move from a niche interest to a widely used platform for gaming, communication and business applications.
Facebook Inc,which bought Oculus in 2014 for $3 billion, had released the Oculus Go VR headset earlier in May, and had priced it at $199
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