Augmented reality (AR) is a live, direct or indirect, view of a physical, real-world environment. The elements of the natural surroundings are augmented or enhanced using technology. Computer generated sensory inputs such as sound, video, graphics or GPS data are used for enhancing one’s current perception of reality.
Virtual reality (VR), on the other hand, replaces the real world elements with a simulated version using cutting edge technology. The surroundings are not enhanced but replaced to emulate the feeling of the popularly labeled “suspended disbelief” – feeling of a concrete existence without actual existence.