Microsoft Research published a video that showcases its progress in 3D hand motion tracking research. This technology makes it possible to use your hands to interact with virtual reality games and applications, just like you do in the real world.
The full details of this project can be read over here.
See an example of 3D hand tracking research from Microsoft, in proceedings at SIGGRAPH 2016. Researchers created virtual controls that are thin enough that you can touch your fingers together to get an experience of touching something hard. They also developed sensory experiences that allow people to push against something soft and pliant rather than hard and unforgiving, which appears to feel more authentic.