I really don't understand why people are comparing VR with AR. They are two separate experiences where one is not a subset of the other. VR and AR bring very interesting experiences to the gaming industry and I cannot wait to see what sort of games are developed using this technology.
VR, in my eyes, has already been proven to be a success in terms of execution based off of gameplay videos and players experiences. It appears to be getting a lot of positive feedback as well as widespread appeal. The price is of course still unknown; however, VR has no chance in becoming a "flop" that was seen 20 years ago with the Virtual Boy.
AR, of course, has a widespread audience to appeal to and shows a lot of promise. But how can people forget the promises that were shown with "Project Natal" and the Milo demo? Why haven't we seen the ability to interact with characters or draw and send pictures to them in the game 6 years later on the Kinect or Kinect 2.0?
I think Microsoft has a lot to prove to gamers after introducing that Milo demo, which was arguably the biggest lie in all of gaming. On the other hand, we have virtual reality that is backed by two large corporations. All I have to say is that this E3 will be very interesting.