Microsoft has unveiled its new HoloLens augmented reality headset, with a stunning Minecraft demo showcasing the new tech at the annual E3 gaming conference in Los Angeles, California.

According to Microsoft, the HoloLens is the first fully untethered, see-through holographic computer. The next-gen technology enables high-definition holograms to come to life, seamlessly integrating with real-world physical places, spaces, and objects.

Offering a tech demo at E3 using Minecraft as an example, the user played the game on a wall before transferring it to another surface, using voice and hand gestures to manipulate the virtual objects projected by the headset.

The HoloLens differs from the popular Oculus Rift VR headset in that Microsoft’s version brings holograms into the user’s environment, as opposed to Oculus Rift’s shut-off, isolated experience.

The HoloLens can operate as its own computer system and contains more computing power than the average laptop. The Windows 10-powered device uses advanced sensors to capture information about what the user is doing and the environment around them.

“Holograms are the next evolution in computing,” said a Microsoft statement. “With this vision in mind, hardware, software, and design came together to create the first fully untethered holographic computer.

“People, not devices, are mobile. We are ready for technology to move beyond devices, beyond screens and pixels, and beyond today's digital borders.”

While a price for each device has not been confirmed, estimates are ranging from anywhere between US$400 (€355, £257) and US$1200 (€1064, £771).