The newest version of the Oculus Rift VR helmet has the ability to track when you lean left and right. It doesn’t sound like much but it’s a huge improvement to the feeling of immersion.
Here is a video where some guys try it out. (start at 29:34)
The technology is advancing quickly. What is becoming apparent though is existing games will be difficult to port to a VR system. The designers have said that the Rift is supposed to be used sitting down. I imagine that vehicle based games will be a lot of fun. First person shooters though might have to be rethought.
Exploring historical worlds I think is where this technology will be used for first in Education.