Neither really. The VP uses a pair of 4K displays to render a high dpi section where it sense your eyes focusing. This is out of a much wider virtual display sp

Neither really. The VP uses a pair of 4K displays to render a high dpi section where it sense your eyes focusing. This is out of a much wider virtual display space (potentially 360deg). As your eyes and head move it shifts the image through that high resolution area. the space outside that area is rendered in a lower resolution to match your peripheral vision. This technique is called foveated rendering. People who have tried the demos say that it is a seamless experience. Moving your eyes and head around, you see things rendered at a 4K resolution but it appears that the space around you is unbounded.