mixed reality (MR) is similar to augmented reality (AR) except virtual objects are integrated into the natural world

For example, a virtual ball beneath your desk would be blocked from view unless you bent down to look at it.

The differences between VR, AR, and MR are best summed up by quote attributed to Clay Bavor:

VR is the power to take you anywhere, MR and AR is the power to bring anything to you

Computer game designer Graeme Devine, now Chief Creative Officer at Magic Leap, describes mixed reality as:

Mixed reality is the mixture of the real world and virtual worlds so that one understands the other. This creates experiences that cannot possibly happen anywhere else.1

1. Devine, G. Website Article by Kris Graft [accessed September 21, 2016] Magic Leap’s ‘chief game wizard’ has big ideas for the mixed reality future