I’ve finally caught up on the release notes for this:
System Positional TimeWarp (PTW)
We’re introducing System Positional TimeWarp (SysPTW) from Depth-From-Stereo to Quest headsets. PTW uses real-time scene depth to reduce visual judder and lag when apps drop frames, making movement in VR smoother and more comfortable. This feature automatically activates when needed and works across all apps, with no impact on regular performance. You can expect a more stable experience, especially in demanding social and gaming apps
So basically what’s happening here is the Quest uses the motion estimation engine on the XR2 to perform depth estimation using stereo images. If you have a stereo image and look at an object, you can measure the “distance” between that object in the left view and the right view. Now, accounting for your IPD, use that distance to determine the distance between you and the object (aka, the depth). It’s an imperfect process but works surprisingly well (unless you have a lot of transparency, like a glass cockpit).
This depth is then used for better spatial reprojection (Timewarp in Meta speak). In particular, it helps creating better perspective when translating your head (as opposed to traditional Timewarp that only accounts for rotation of the head). With streaming apps, when no depth is being streamed (none of the streamers do it), this could possibly improve quality.
Here is an experiment to run, now that you understand better what it does.
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Pick an object near you (as opposed to something very far out in the landscape). I like to pick the “frame” of the plane, while sitting in the cockpit.
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Now move your head at medium speed from left to right and back, while looking at the object (here the frame of the plane).
If you are not hitting the refresh rate (and you are not, because this is MSFS :D) and any form of motion reprojection (ASW, SSW) is turned off, you should clearly see the “juddering” of not meeting the refresh rate. This is every other image (more or less) being reprojected instead of being rendered at the correct pose.
Now compare how noticeable is the juddering with and without that PTW option enabled.
I haven’t tested that myself with the new PTW option, but hopefully that helps figuring out placebo or not!