In this thesis I will explain the notion of virtual reality or virtual world and further explain the way in which computer simulations provide the virtual space experience. I will give a short overview of the historical development of virtual reality and showcase in which areas of life and to what purpose people apply this technology in today’s world. I will present the current state of this technology with the most influential brands and I will compare the popularity of the virtual reality systems and devices. I will more closely explain the difference between virtual reality (VR) and augmented reality (AR) and the ways in which these technologies are fundamentally changing our society. VR and AR systems will bring great changes in the coming decade in the ways we are entertained, the way we work and communicate. On the example of virtual storytelling I will further show how the film and video game industries use this technology for creating even more intense experiences. Interactive video games and virtual films and cinemas are just part of the virtual industry which will eventually end up replacing the familiar modes of consuming media content. In this thesis I will present the results of an online poll from which user familiarity with this technology and its content can be gleamed. With the new 5G technology i.e. the next generation of wireless data transfer, communication and the exchange of data in real time through virtual reality will become an even more “real” and fun experience. Because of the wide applicability, speed and responsiveness this jump from 4G to 5G networks could open great possibilities and give a strong impetus to the development of virtual and augmented reality.