The power of the Oculus Rift virtual reality headset doesn't hit me until the moment my stomach drops.

I sit in the middle of a room with the "Lava Lord," a generic fantasy character that sits in the middle of a cave with streams of lava. I look around and see rivers and fountains of lava pouring.

Then Nate Mitchell, vice president of product at Oculus VR, suggest I look up and start flying toward the volcano. With a push of the left thumbstick on an Xbox 360 controller, I gaze upward and start floating. At one point, I double checked whether my feet were planted on the ground to make sure to confirm this was only a demo.

For those new to the Oculus Rift, it's the virtual reality headset that has the video game world buzzing. Founded by Palmer Luckey, Oculus VR has drawn the attention of game companies and big names including Minecraft creator Markus "Notch" Persson.

After raising $2.4 million through Kickstarter, the company shipped 7,500 developer kits for $300. A consumer version should be ready in months.

"The whole goal is to put players inside the game, let you step inside the world (and) feel like you're actually there," says Mitchell.

At E3, Oculus VR showcased a high-definition version of Rift running in 1080p, which delivers a crisper, clearer picture compared to the original.

The device features stereoscopic 3-D, so my first objective after trying Rift on was to adjust them slightly like a pair of binoculars to get a clear view. The demo starts outside a giant castle as snow falls to the ground. Looking up, I see snow falling toward my face. Even looking directly behind me, I see other elements of the environment.

Another level highlights the Rift's ability to show shadows and other visual elements. There's a room with what looks like a giant solar system mobile, including planets and tiny asteroids floating across.

Only a handful of games are working on Rift. Mitchell points out several Oculus VR employees have a version of Minecraft running in Rift.

The best sampling of a game running on Rift is a demo called EVR from CCP Games, developers of Eve Online and Dust 514. The demo features dogfighting in space, as players sit inside a spaceship and take on competitors using missiles and laser rifles.

Players will look down and see control panels on the ship, and feet firmly planted down. Scanning around gives players views of the tiny cockpit.

The initial sensation from launching into space is spectacular. The game featured a lock-on system where players could target enemy ships by moving their head around and following the target before firing. There were also several moments of anxiety as flashing red lights and loud horns signaled incoming missiles.

The Oculus Rift isn't just for games, either. One app highlighted by the company featured a trailer from the film Man of Steel shown inside a virtual movie theater. To make the experience feel more immersive, users could see theater seats, the flicker of the projector behind them and even exit doors near the front row.

"It's only going to get better from here," says Palmer Luckey, creator of Oculus Rift. "What we have ... is just a very rough prototype. We wanted to show people the progress that we've made and show that things are just going to continue to get better in the VR space as times moves on."

Follow Brett Molina on Twitter: @bam923.

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