When real and virtrual world are intermixed together, we get what we call the Augmented Reality. It is similar to virtual reality but with the addition of live real time information. It has various applications like in medicine, robotics, mobile applications, military and Movies.
Let us take the axample of Movies. How augmented reality can help in creating better movie experience. You could crate studios and rent them to people and earn cash . Or you could use these virtual studios and place the artists in them so that the cost of a real studio is saved. This is but one of the number of applications possible with augmented reality.
Also suppose you have a mobile you could use GPS and sensors on mobile and make the mobile experience a memorable one for user by adding value added service like locating which location a video camera is poointing at and if for eg it is a resturant you display the Menu and wait time to the user.
Wow, this is really some news.