Microsoft has announced that Oculus Rift owners will be able to stream Xbox One games to the Oculus Rift, starting on December 12. This isn't the full Oculus Rift support that we expected, but it is what Microsoft said when the partnership was announced. I'm sure Microsoft and Oculus hope it gets someone excited.
The streaming works via a new app that will be available in the Oculus Store. That app, Xbox One Streaming to Oculus Rift, will mirror your Xbox One's video output to a virtual screen within the Rift. Once there, players have three VR environments they can use for streaming: Citadel, Retreat, and Dome.
All it requires is a Rift-attached Windows PC and Xbox One connected to the same home network. Wi-Fi seems fine according to Microsoft, but something like this is probably better with an Ethernet connection.
Microsoft and Oculus VR have an ongoing partnership that I expect will end up in an Oculus headset for Xbox One Scorpio in the future. For now, Microsoft is on its own virtual reality kick. Back in October, the company announced that it was working with various hardware partners like HP, Dell, Lenovo, Asus, and Acer for low-cost VR hardware for Windows 10. Those headsets are expected to start at $299 and be compatible with the Windows Creators Update in Spring 2017.