Definition
Virtual Reality (VR) is a technology that builds and presents an entirely virtual environment with computers, usually experienced through a head-mounted display.
How it works
The headset renders stereoscopic images for each eye and, combined with tracking of the head and controllers, updates the view in real time, producing the sensation of being inside the virtual environment.
Usage
Games and immersive storytelling, simulation training such as flight and surgery, design and architecture reviews, and production pipelines that replace real locations with virtual sets.
Related and confusable terms
AR overlays virtual content on the real scene, whereas VR replaces the visible environment altogether; both rely on 3D rendering to produce their imagery.