"Augmented Reality" is one of the hottest terms in electronics today, but what does it mean? According to Wikipedia...
Augmented reality (AR) is a field of computer research which deals with the combination of real-world and computer-generated data (virtual reality), where computer graphics objects are blended into real footage in real time. The term is believed to have been coined in 1990 by Thomas Caudell, an employee of Boeing at the time.
Here's a video that demonstrates quite well how AR is being used in the world of gaming...
and more information can be found on the Inc.com site and the Augmented-Reality website