One of the main things developers have been asking Oculus for since the release of the Rift development kit is a higher resolution display. On the current kit, users often report seeing a "screen door" like effect, due to the relatively low resolution of the 1280 x 800 LCD panel being used in the display.
Today during the first day of E3, Oculus has been showing off a prototype Rift with a 1080p screen. While this model isn't going to be for sale, and is merely a prototype for the future consumer version of the Rift, those who have tried it today are saying the difference in image quality is huge.
Oculus says the consumer version may have an even higher resolution screen than what they are showing today, it's all still up in the air. Currently, there's no ETA for the Rift to hit stores, as they wait for a solid software library to amass before offering it to the public.
Also on display was a new demo using Unreal Engine 4, which they've announced will come bundled with built in support for the Rift for developers who wish to make games for it.
We're expecting our dev kit to arrive sometime in the next month, so we'll have a lot more to say about the Oculus Rift soon. In the mean time, check out this impression video from the guys at Engadget who tried out the new prototype this morning.