AR is certainly more convenient and user friendly than VR but we won't know for sure. I know google is really pushing AR with Tango and phones that are coming out are supposed to have specialized Cameras that can do more AR. So maybe.

I certainly like AR more so than VR atm but once the VR prices come down and we get more VR games, that is when we will know for sure.

No. AR is currently even more niche than VR. The only AR product MS currently has is Hololense (and to a lesser extend Kinect) and that thing has even less use cases than any VR device. AR will not suddenly become popular because of Pokemon Go. Pokemon Go is popular because of the name and "90s kids" feeling nostalgic as well as a lot of people jumping on the hype because it's a social event.

People don't love AR games. People love hype and being social.

There is no "AR compatibility". Every smartphone that has a camera can do this. The simplest application of it would be Google Translate. There are several AR apps out there but people haven't really adopted them yet because in most situations it's less efficient than just looking up stuff on the internet or having a dedicated app. AR also has the disadvantage to be basically bound to certain places. In terms of games that is very inconvenient. Pokemon is not the first GPS game, not even the best, yet you didn't see people raving about this before it.

If you want a realistic evaluation of the success of AR games just picture the same game without Nintendo or the Pokemon brand attached to it.

It could be a great push for more AR apps but there is also the worst case scenario. If people get eventually tired out by pokemon and sick of running around they're probably not inclined to jump right into the next AR experience. See motion controls. In the end people look for the most convenient source of entertainment. Pokemon go is a nice refresher but I assume people will just go back to conventional gaming after it. Not to mention that the popularity goes way above the Nintendo fan or even gamer. There are a lot of casuals involved and they will certainly not seek out games by themselves after this.

The game is selling solely thanks to the Pokemon name. The previous game that company made with a similar concept didn't do well at all. Simple as that. Remove Pokemon and no one would give a damn.

First thing I disabled :D

I see AR being a lot more popular in the future than compared to VR, but I could be wrong.. :/

I said this a year ago.

I wouldn't really related the 2. AR as demonstrated in pokemon go has been in everything from the DS to the PSVita, its not new or untested technology. But Hololense has always looked cool, it just seems a while off from any practical application that justify $399 investment. I haven't seen anyone doubt its potential down the road when we all have advance google glasses but VR is the immediate future in terms of hype, Pokemon Go is just agenius application of fairly simple AR combined with the Pokemon IP, geolocation, social networking and social media. Its also free.

AR is probably the future, but that doesn't say anything about Microsoft's standing with regards to its future. The real reason Pokemon is doing so well is because it's Pokemon. Remember, Microsoft had a tablet before iPad, but the perfect storm of marketing and user-friendliness that was Apple took that train and rode it to the bank. AR may be the future, but at this rate, it's Nintendo whose going to benefit the most if they keep supporting their app...unless Microsoft finds something smart to do with Minecraft (like gathering materials in real life as a companion for the real game).