What is virtual reality? Advantages and disadvantages

Medicine, education, entertainment, gastronomy… Virtual Reality is here to stay, and it’s time to address what VR (virtual reality) is and what its main pros and cons are. Let the game begin!

Virtual reality closed 2023 with record growth, generating an international business volume of €10.998 billion. In Spain, this immersive technology is expected to have reached around €102 million in revenue - Telecoming data. We are facing one of the major technological innovations of recent years, which is why this post focuses on explaining what virtual reality is, its main benefits, and the disadvantages we face. 

What is VR or virtual reality?

The first question to answer is obvious: despite the high penetration of this technology, there is still significant public uncertainty about what virtual reality really is and how it works. The Extended Reality Association of Spain (XR), which brings together companies and experts in technologies like virtual reality, augmented reality, and mixed reality, notes that these developments “can be applied across multiple sectors.” Hence, media outlets frequently report on how VR (its English acronym for ‘virtual reality’) is being adopted in key fields such as medicine and education with highly satisfactory results. 

Virtual reality, which is the focus of this post, is a technological development that allows us to create digital, artificially generated environments, enabling full immersion and interaction with the objects and scenes present. To provide these experiences, the work of VR engineers is essential, both for creating the programs and for designing and improving the devices that allow users to experience this ‘sensory journey’: specialized VR glasses and headsets. 

Benefits of virtual reality

More and more sectors are adopting this immersive technology to enhance their products, services, and related experiences. VR applications are currently being implemented in fields such as medicine and health, education and training, arts and heritage, music and performing arts, entertainment, and marketing and advertising. Across these sectors, the benefits of virtual reality include: 

1. Generation of immersive experiences, allowing, for example, testing upcoming launches or performing medical simulations to check viability. 
2. Creating new opportunities for connection. It transcends geographic, cultural, and language barriers, enabling people from all over the world to connect.
3. A new ‘face-to-face’ communication channel. An enhancement over traditional video calls. 
4. Optimization of economic and material resources. VR allows experimentation without physical materials, reducing costs through trial and error. 
5. Tool for skill development. Useful for personal growth or for companies seeking to maximize team talent. 
6. Gateway to inclusion. People with disabilities can experience activities that might otherwise be difficult to access through VR applications. 

Innovation goes hand in hand with immersive technologies. More sectors are exploring the advantages of virtual reality, including media and even the military. The UK Ministry of Defence is already using VR systems to train teams in fully simulated war and combat environments.

Disadvantages of virtual reality

Virtual reality is one of the most promising technologies for the future, as supported by numerous studies and investment data in Spain and globally. However, it isn’t without drawbacks. What are the main disadvantages of virtual reality? 

• High investment

Companies adopting immersive technologies must face very high budgets for application and program development. This is beyond the reach of many institutions or companies.

• Constant testing phase

Although VR development is widely discussed and accepted, many applications are still experimental. Combined with high costs, this slows faster advancement in its development.

• Potential negative effects on users

Research is ongoing on the consequences of excessive VR use for certain user profiles. One major concern is the potential confusion between virtual and real-world experiences. 

Difference between augmented reality and virtual reality

Virtual reality is part of the so-called immersive technologies, alongside augmented reality (AR) and mixed reality (MR). These terms are often confused, but it’s important to understand the following differences between augmented reality and virtual reality: 

• In virtual reality, there is complete immersion in a fully artificial world, entirely separate from reality. In AR, a virtual layer is overlaid on the real world. 
• Different systems and tools are used: VR requires specialized headsets or glasses, while AR can often use compatible smartphones or tablets, although dedicated AR glasses also exist. 

These technological innovations require highly specialized professionals, trained in application development as well as experimental and controlled workplace VR use. At EAE, we focus on training students in all aspects of immersive technologies, with special attention to virtual reality due to its advantages. Specific programs include the Master in Big Data & Analytics and the Master in Artificial Intelligence & Machine Learning for Business. This is a growing field, offering exciting career opportunities for those who want to specialize in it.