I've heard about the Oculus Rift months ago. They're using parts of the brain and mind to stimulate responses and interaction to the game connected to Oculus.
I don't think it's quite at that level yet. From what i've gathered, it's just a headset with head-tracking and a stereoscopic 3D display, with some add-ons that allow motion-sensing. We're not going to be plugged into the Matrix with this.