Oculus has created a few different ways in which the device knows exactly where you are to make sure the screen can be calibrated correctly, and after a lot of deliberation, they've gone with a small microphone-shaped pole that will sit on your desk, beside your computer screen. The device is quite discreet, it's designed to blend in with whatever else you have in your room (as long as it's black), and works with a tracking system that integrates with your headset through a series of infrared LEDs - which Oculus calls it the 'Constellation Tracking System'. On the DK2 (the previous non-consumer model) there was a snag with the system where you couldn't look behind you, because the LEDs fell out of the camera's field of view, but that's been fixed by adding LEDs into the rear of the headset as well as the front, so you can fully rotate 360 degrees. All you'll have to do is make sure you don't turn around too many times though, otherwise you're going to get tangled up in the 10-foot USB cable from the main device.
