So far Virtual Reality hasn't been as profitable as it's makers have expected and personally in my opinion (and what I have found) most people prefer to have physical real life experiences over virtual ones because nothing virtual will be as truly realistic and authentic as the real thing.
AR (Augumented Reality) on the other hand has the potential to bring virtual experiences into a real life setting. With this setup you could buy 2 AR headsets and invite a guy over your house to build something with Minecraft blocks or play chess while you both sit down and generally talk and interact with one another. If you can't invite anybody over due to bad weather or perhaps your friend is busy in life then you could sit at a table and build virtual structures with Lego or play with sand on the kitchen table.
AR provides that potential for social experiences in contrast with VR promoting social isolation in a matrix like setting not to mention the bad health effects you can get while using a VR headset even though it has been reported to be only temporary according to this article from The Guardian.
AR still allows you to see what goes on around you while you play which will hopefully curve the potential for health concerns like Vertigo because your body and brain is suddenly transitioning from one environment to another once you're done using a VR headset. The thing that concerned me about VR is not just the health concerns but the lack of seeing and knowing what goes on around you especially in an environment with strangers around.
I think given the social benefits of AR, The ability to see your surroundings while you play and hopefully the lack of bad health effects on your body (fingers crossed) AR would be a much more appealing option especially to millennials that prefer social experiences rather than solo ones. It still doesn't provide the real thing but it will come pretty close if AR makers introduce hand motion sensing that captures 1:1 motion in real time.
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