AR suffers from the same problem that's currently killing VR under the guidance of "muh immersion" fags. AR is environment based, meaning that level design and pacing has to go out the window so that a game can use procedural generation to conform itself to an infinite amount of configurations of a more or less static space. VR, on the other hand, chasing after immersion requires room-scale VR - but that limits the game to being more or less room-scale in it's environment. You're either stuck in a single place flailing your arms like a retard, or teleporting between discrete places.

In either case, VR has the advantage since it can shut out the real world 100% and overlay whatever environment the designers choose - meaning they have far more control over the pacing, environmental challenges, enemy spawns, etc... all while keeping the environments evolving and changing to both lessen the monotony of the experience, and to slowly ratchet up the skill ceiling. 

Although, because you're shutting out the real world on two primary senses, no VR solution should be without pass-through audio and cameras. Merely as a safety and convenience feature.

AR's place is in the draft-room and board room. Not in the living room.