The quick answer is that it can't, at least if a $200 pricetag is to be believed. The closest we have is the GearVR, which largely depends on strapping a $700 smartphone to it. It's possible that they've partnered with the likes of Samsung to get their wonderful 10nm Exynos SoC featured on the Galaxy S8 stripped of all "phone" functions, but I'm still not convinced it can be $200 with even additional tracking features.
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Yes, at current standards it definitely won't be possible to achieve the same quality. But I believe that VR technology will change and improve rapidly, and maybe the device could surprise us when it comes out in late 2018.