>>4 Tech's come pretty far since those days. Oculus Rift is proof we're coming close, but not quite there. Microsoft filed a patent for some kind of augmented reality glasses a while back, I think June or July. Kinda reminds me of DotHack. They also filed a patent for a device that could project the game around you in a full 360 degree view. Used in conjunction with Kinect, and it would track your movements and the images would shift accordingly.
>>3 I put a slash between Augmented and Virtual for a reason. Because i'm not sure which it will be. Augmented Reality, is basically just like modifying what you can see. The 3DS lets you use its camera's to see 3D objects in the real world that arn't actually there. The Oculus Rift blocks out your view of the real world and let's you see only the game world in front of you, with the screen turning as your head does, giving you the allusion of being in the game. Virtual Reality, is when your are either Subconciously or Physically inside the game. DotHack and Sword Art Online are great examples of Subconcious Virtual Reality. Your physical body is still present in the real world, and you are still slightly aware of the fact, but your subconcious is inside the game world. Its basically like having a dream, except in a precreated environment and your fully in control. The best example of Physical Virtual Reality is either Code Lyoko of Bakugan Interspace from Bakugan: Mechtanium Surge, where their physical bodies get digitized basically and reconstructed digitally in the game world or other virtual environment.
