Intel expects to launch Project Alloy-based virtual reality headsets by year's end, allowing enthusiasts to move around a room without being tethered to a PC.

The chip maker first showed off Project Alloy last summer at its developer conference, and Intel CEO Brian Krzanich said during a Wednesday CES press event that it's "progressing very well." So well, in fact, that Intel expects to release Alloy headsets by the fourth quarter via its "top OEM partners."

During the press conference, Intel equipped attendees with Oculus Rift headsets so they could check out VR scenarios powered by Intel technology. But at the moment, Oculus Rift must be tethered to a PC, which is not an ideal situation for VR games that require a lot of movement. Oculus parent company Facebook is working on that, but it was still early days for the social network as of October.

At CES, two people wearing un-tethered Project Alloy headsets took to the stage to play a game in a mock living room. When the game was activated, the room turned into a space bunker, and the players were now firing weapons at invaders. As Krzanich noted, the setup was unique because both men could see and battle each other in the same scene. Typically, VR is a solo endeavor.

There were no sensors in the fake living room, Intel said; players just had the headset and controllers, and Intel promised "seamless tracking" built into the device. "Everything is in the headset itself; you simply put this on, turn it on, and you're ready to go," Krzanich said.

Those headsets include two RealSense cameras, integrated computing, vision accelerators, and batteries in a weight-balanced device.

Pricing was not discussed, nor were any other details about which partners might participate. But Krzanich stressed that Project Alloy is an open platform available to anyone who wants to help bring VR to life.