Difference and similarities

Both virtual reality and augmented reality are similar in the goal of immersing the user, though both systems do this in different ways.

With AR, users continue to be in touch with the real world while interacting with virtual objects around them. With VR, the user is isolated from the real world while immersed in a world that is completely fabricated. As it stands, VR might work better for video games and social networking in a virtual environment, such as Second Life, or even PlayStation Home. 

Which technology will succeed?

As it stands, augmented reality is ahead of virtual reality, as there are several products already on the market. We are witnessing the rise of AR hardware devices from Google in the form of Glass, and also plans from Microsoft to launch something similar with its $150 million purchase for wearable computing assets.

On the matter of VR, the technology is just stepping up to the plate. It's still far away from being this great thing for social encounters in a virtual world, but with the rise of the Oculus Rift, it is getting there.

We believe both AR and VR will succeed; however, AR might have more commercial success though, because it does not completely take people out of the real world.