(Adds Oculus VR executive quotes and details)

By Lehar Maan and Malathi Nayak

Sept 3 (Reuters) - Samsung Electronics Co Ltd 005930.KS has launched a virtual reality headset for its new Galaxy Note 4 phablet using technology from Oculus VR, a company that Facebook Inc FB.O acquired for $2 billion.

The wireless headset, called Samsung Gear VR Innovator Edition, allows users to watch videos and play games in a virtual reality setting.

Samsung, the world's biggest mobile phone maker, unveiled the Galaxy Note 4 phablet earlier on Wednesday.

The headset, into which the Note 4 can be docked, will have four visual settings that simulate experiences such as sitting in a theater or being on stage.

The headset is a beta version for "developers and enthusiasts; it's going to be sold online only," Oculus VR Chief Executive Brendan Iribe said. "It's not mass-market consumer ready."

Samsung did not announce a price for the product but said it would be available later this year.

The Gear VR is not the first mobile virtual reality headset. Earlier this year, Google GOOGL.O showed off a cardboard box that when attached to an Android phone transforms it into a virtual reality headset.

The Gear VR has lower latency and better images compared to previously developed mobile VR headsets from Google and others, Iribe said.

Sony Corp 6758.T also has a prototype for a virtual reality headset for its Playstation 4 games console. The headset, in development under the name "Project Morpheus", is designed to project images that shift along with the movements of a gamer's head. ID:nL3N0MG0ZB

The Note 4 features a crisper, 5.7-inch (14.5-cm) display in a metal frame, reflecting Samsung's latest design strategy to keep pace with rivals including Apple Inc AAPL.O , which is expected to launch its first large-screen iPhone next week.

The new Galaxy Note 4 offers accessories designed to attract gamers. It also has an improved pen stylus and related software as a handwriting alternative to typing on a keyboard. ID:nL5N0R34HJ

(Reporting by Lehar Maan in Bangalore and Malathi Nayak in San Francisco; Editing by Kirti Pandey and Jonathan Oatis) ((lehar.maan@thomsonreuters.com, Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6234, Reuters Messaging: lehar.maan.thomsonreuters.com@reuters.net;))

Keywords: SAMSUNG ELEC PHABLET/OCULUS