Google's next step in VR, Daydream View, costs $79, coming in November (hands-on)

Google's aiming to take the next step forward in virtual reality, but it's happening on a phone...via an affordable accessory.

Yes, there's a new Google Pixel phone. But that phone is the first Daydream VR-ready phone, too. And together with Daydream, it will try to challenge what Samsung and Oculus have done with VR over the last couple of years.

Here's what you need to know:

It doesn't work with all phones. The first Google Cardboard fold-together headset showed that VR, or something like it, can happen on nearly any phone if you're patient with limitations. Daydream is different. It's a step-up type of technology. It's smoother, better-looking, and supports its own motion-controlled remote. Google plans for Daydream to run on a certain set of phones with certain specs and displays. But Pixel is the first compatible phone out of the gate. More Daydream-ready phones are coming, though.

It doesn't track you walking around, but it has a motion-tracking controller. Like Samsung Gear VR, it's something you're meant to sit down in a comfy swivel chair and use, or stand and turn with. It doesn't track the space around you, so you can't go for a VR walkabout like you can with the higher-end Oculus Rift, HTC Vive and PlayStation VR. You can't even lean closer to objects (we tried).

But Daydream has its own little controller with motion controls -- and when we tried it out, we were super impressed with how fast and precise it was. Google says it used nine-axis inertial sensors, a Bluetooth Low Energy connection and a lot of fine tuning to get the remote to work this well. It felt good enough to write with, and swinging around a magic wand or mouse pointer was no problem.

The controller nestles right into the inside of the headset, held in with an elastic band, so you don't need to worry about where it goes when it's not in use.

It has a comfy design. Google says it's worked with clothing manufacturers to develop breathable microfiber materials for a cozier fit. The fabric-covered headset is sleek and small, more like the PC-connected Oculus Rift (also famed for comfy fabrics) than Samsung's phone-connected Gear VR. According to Google's Clay Bavor, it's 30 percent lighter than similar devices. It's designed to fit over eyeglasses, too.

Strangely, it doesn't have a top strap, so you have to cinch up the rear elastic, ski-goggle like band fairly tight to keep it pressed against your face. But once it's there, it feels more like a pillow against your face than an tough electronic contraption. Google says the inner fabric is made of seven different layers of different density foams, laminated together, to be both soft and rigid.

It autoconnects with phones. A top latch opens up, and the phone drops in. The phone auto-aligns and pairs, without plugging into anything. It uses little pressure sensors to tell where the phone is in relation to the headset, so it can line up the picture for each lens without much fiddling.

It comes in several colors. Slate gray will be available first, with Snow and Crimson colors coming soon. This is the first time I remember being offered a color choice in VR headsets.

Google promises 50 apps by end of year, with hundreds to come. Apps like Hulu, Eve: Gunjack 2 and Google's own suite of Photos, Street View, YouTube and other software will make Daydream apps a mix of games, entertainment and other things. Google also teased a "Fantastic Beasts and Where to Find Them" app based on the upcoming movie. But don't expect all Google Cardboard apps to run in Daydream VR; these are a different class of apps.

It costs $79 or £69 and will be available in November. That's lower-priced than Samsung's Gear VR, and it also comes with its own motion controller. Google's gone aggressive on pricing, which could make a difference in getting a holiday foothold. But having enough phones that work with it will also matter: not everyone is going to want to buy a Pixel phone.

Oh, and Google's giving away the Daydream View for free if you pre-order a Pixel phone -- but only in the United States, only until October 19 or until supplies run out.

Update, 11:31 a.m. PT: Added hands-on video and impressions from CNET's Sean Hollister and Lexy Savvides.