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Daydream is a virtual reality platform developed by Google. Read more about Daydream here.
It's a direct competitor to Gear VR from Samsung, and an indirect competitor to the HTC Vive, Oculus Rift and PlayStation VR.
The fabric-covered headset made by Google is called Daydream View.
The headset is said to be made by HTC, the same company making the new Google Pixel phones.
Daydream View will cost $79 (plus, of course, the cost of a compatabile phone).
The key to Daydream is a comfortable viewer, an intuitive wireless controller, and strict standards for which phones it'll work with, to assure a good VR experience.
Daydream View comes in a grey slate color, but snow white and crimson red will be available later this year.
The Daydream remote allows you to pan left and right, or up and down, through 360-degree videos and VR environments.
Daydream View includes an auto-alignment system to make sure your phone is properly situated.
Daydream is also Google's name for the whole VR hardware and software ecosystem, not just the headset, and Google hopes other hardware companies will eventually make their own Daydream devices, running Google's software, including VR apps.
The controller fits inside the headset once you remove your phone.