AR, VR and XR differences explained: Why should you care?

AR, VR and XR are transforming how we interact with the world. Understanding the differences helps you keep up, make smarter choices, and stay ready for what’s next.

Amit Rahi
Published17 Jun 2025, 12:39 PM IST
Discover how AR, VR and XR are changing the way we see, experience and connect with the world.
Discover how AR, VR and XR are changing the way we see, experience and connect with the world.

We hear a lot about AR, VR and XR these days, but what do they mean and why should you care? With these technologies becoming more common in gaming, work and education, it’s worth understanding what the difference is between them and how they’re already starting to shape the world around us.

Augmented Reality (AR): Enhancing the world around you

Augmented reality, or AR for short, is all about adding an extra digital layer to the world you already see. It takes your surroundings and enhances them by overlaying digital content like images, sounds, animations or bits of helpful information. Unlike virtual reality, AR doesn’t block out the real world; it simply builds on top of it.

A great example is the wildly popular Pokemon Go game that launched back in 2016. If you played it, you’ll remember how it used your phone’s camera and GPS to place digital creatures called Pokemon around your local area. That’s AR in action, digital content that feels like it's part of your real environment.

Virtual Reality (VR): Stepping into a different world

Virtual reality, or VR, is quite different from AR. Instead of enhancing your real surroundings, it replaces them entirely. Slip on a VR headset like the Meta Quest or PlayStation VR, and suddenly you’re standing in a 3D world that’s been completely digitally created.

The visuals and sounds are all coming from the digital world, cutting you off from the physical space around you. For most people, VR is still most closely linked with gaming, but its potential goes way beyond that. It’s already being used for serious things like pilot and medical training through realistic simulations, as well as in therapy.

Extended Reality (XR): The bigger picture

Extended Reality, often shortened to XR, is the broader term that brings everything under one roof. It includes Augmented Reality, Virtual Reality, Mixed Reality, and anything else that blends digital and physical experiences.

The main goal of XR is to create a seamless connection between the digital and real. Whether you’re wearing smart glasses that display directions on the street in front of you, or attending a business meeting in a shared 3D space with people from around the globe, XR aims to make it feel like the digital is naturally part of your world.

FeatureAR (Augmented Reality)VR (Virtual Reality)XR (Extended Reality)
ImmersionEnhances the real worldFully digital worldCovers AR, VR, and Mixed Reality (MR)
InteractionReal + digitalDigital onlyMixes or extends real & virtual worlds
Common DevicesSmartphones, Nreal Air smart glassesMeta Quest 3, PlayStation VRMicrosoft HoloLens 2, Meta Quest Pro
Typical Use CasesNavigation, retail try-ons, educationGaming, training and virtual meetingsEnterprise solutions, blended reality apps

Why does knowing the difference matter?

Understanding the difference between AR, VR and XR isn’t just about staying up to date with the latest tech buzzwords. It’s about recognising how these technologies are already shaping the way we live, work and play. As these tools become more widely available, knowing what each one offers helps us make smarter choices.

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