The Quest features the "same best-of-class optics as Oculus Go", and packs a resolution of 1,600 x 1,440 per eye.
It also incorporates lens spacing to "maximise visual comfort", added the company.
Improved sound with deeper bass and support for Touch controllers is also included with the Quest.
The controllers let users interact with their virtual environment by moving their hands in the real world – with the motions tracked by the system.
Oculus said the Quest (64GB) will launch later this year for $399 in the US, with over 50 titles ready at launch.
At the unveiling of the Quest, Oculus also revealed Oculus Insight – a "breakthrough technology that powers inside-out tracking, Guardian, and Touch controller tracking".
"This innovative system uses four ultra wide-angle sensors and computer vision algorithms to track your exact position in real time without any external sensors."