Nerve Gear.
If you have seen the hit anime Sword Art Online (or S.A.O for short) you most likely know what the nerve gear is and what it does.The Nerve Gear is a VR device (or virtual reality device). I haveposted pictures as to what it looks like Through the device every sense is being used.
When you are in the game you smell the things around you, you can taste everything you eat. You can see and hear everything around you in a photo realalisticenviroment. You can feel everything as if it were in the real world right in front of you. (Please note the sensation of touch and feel is not to the of the real world though.) When i say you can feel things i mean each type of feeling, mechanical reception the feeling of contact, thermo reception the feeling of hot and cold, stretch reception the feeling of muscle compression, kinestesia the sensing of body movements, proprioception the sensation of a body's place, and equilibriaception the sensation of balance.
Headphones are already great and will only get better with time. With taste and smell finding the answer will exponentially help the as the two senses are so closely related. touch is the big one here, there are many devices to simulate each type of touch i described but it would need to be all in one and need to all fit with in the helmet used as it is the only peice of equipment used in the show (though it is connected to a strong pc). the device would only need to touch your head and still give you feeling anywhere on your body. As for the controls they are completly controlled through the brain. You have the full range of movement that you have in the real world in the game, (without ever actually moving in real life). I would imagine this would be done through an EEG (electroencephalogram) that could take the brain's electrical signals used to move and redirect them into a computer that would use them as movement commands.