A system, comprising: a computing device that executes an interactive application and generates and transmits image frames at a predefined frame rate, the image frames being generated based on an application state of the executing interactive application; a head-mounted display that receives the image frames transmitted from the computing device and presents the image frames through a display device of the HMD, wherein the HMD includes a magnetic emitter that emits a magnetic signal, the magnetic signal having a synchronization encoding that is synchronized to the received image frames from the computing device; and a controller device that includes a magnetic sensor that detects the magnetic signal, wherein the controller device processes the detected magnetic signal to determine magnetic position data that identifies a location and/or orientation of the controller device, wherein the controller device further processes the detected magnetic signal to read the synchronization encoding, wherein the controller device uses the synchronization encoding to generate corresponding timing data for the magnetic position data, the timing data indicating a timing of the magnetic position data based on the synchronization encoding, wherein the controller device transmits the magnetic position data and the corresponding timing data to the computing device; wherein the computing device uses the magnetic position data and the corresponding timing data to determine the location and/or orientation of the controller device, wherein the computing device uses the location and/or orientation of the controller device to update the application state of the executing interactive application. a computing device that executes an interactive application and generates and transmits image frames at a predefined frame rate, the image frames being generated based on an application state of the executing interactive application; a head-mounted display that receives the image frames transmitted from the computing device and presents the image frames through a display device of the HMD, wherein the HMD includes a magnetic emitter that emits a magnetic signal, the magnetic signal having a synchronization encoding that is synchronized to the received image frames from the computing device; and a controller device that includes a magnetic sensor that detects the magnetic signal, wherein the controller device processes the detected magnetic signal to determine magnetic position data that identifies a location and/or orientation of the controller device, wherein the controller device further processes the detected magnetic signal to read the synchronization encoding, wherein the controller device uses the synchronization encoding to generate corresponding timing data for the magnetic position data, the timing data indicating a timing of the magnetic position data based on the synchronization encoding, wherein the controller device transmits the magnetic position data and the corresponding timing data to the computing device; wherein the computing device uses the magnetic position data and the corresponding timing data to determine the location and/or orientation of the controller device, wherein the computing device uses the location and/or orientation of the controller device to update the application state of the executing interactive application.