Augmented and virtual reality technologies promise a broad range of potential applications impacting the entertainment, medical, aerospace, and design industries, to name but a few. Major technology goliaths have been snapping up start-ups and investing heavily in this space. What are some of the practical applications in value creation that will come from virtual reality systems? What might be the impact on manufacturing and product development over the medium term? What could be some of the downside risks to investors as they seek to bring new services to the market?