VR/AR. Virtual Reality (VR) refers to the use of computer technology to create a simulated environment. While VR creates an entirely artificial environment, Augmented Reality (AR) simulates artificial objects in the real environment. An important component of VR is head-mounted display (HMD). Most common applications of VR/AR include entertainment (e.g. video games, 3D cinema), education (e.g. medical or military training) and business (e.g. virtual meetings).