Virtual Reality

That depends on why you're using it, for displaying close range real world into that's exactly what you want but for prepackaged multimedia experiences (games and other stuff like remote interaction) it doesn't fit as cleanly, and he's probably only thinking about the latter.

Mixed reality is excellent for tracking inventory (including at home, finding where you left your stuff), checking the status of and controlling networked devices, navigation, physical coordination, visual guides (especially if they can map onto the objects in front of you), etc...