Along with new technologies come new vocabularies. Understanding all the different “realities” can get confusing. We've got virtual, augmented, mixed, immersive and extended realties to contend with. So, here's a short explanation
Virtual reality provides full simulation of the user's environment. It replaces the user's whole world view with objects that don't physically exist. Everything the user sees is digital, i.e. virtual.
Augmented reality combines a real-world environment with any sort of digital objects, overlays, user interface, or effects. Users sense both physical and digital experience in their field of view.
Mixed reality is an extension of AR. The digital objects in the user's field of view are placed into the real world seamlessly, as if they belong there. It requires the most advanced surface mapping algorithms to create the perfect illusion for users.
All the above can be grouped together and called extended reality (XR) or immersive reality.
The above is from AR POST, The State of Augmented Reality. Click here for the entire article.