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This chapter explores how virtual reality (VR) distinguishes itself in terms of immersion within the field of video games. Central to this inquiry is whether VR represents a revolutionary new gaming paradigm or merely the latest medium falling short of gamers’ expectations. The discussion begins by examining the concepts of immersion and presence, highlighting their overlapping properties and how VR's capability to merge perspective and interaction enhances these experiences. Immersion involves sensory stimulation, narrative attachment and player agency within virtual environments (VEs), while presence is defined as the sensation of inhabiting a virtual universe. The chapter addresses VEs, diegesis and fictional worlds, building on the narratology and ludology debate. It chapter assesses the roles of environmental storytelling and the world inhabiting effect in games, particularly open-world role-playing games set in fantasy and science fiction universes. These games offer players active participation in narrative construction, enhancing immersion. Furthermore, the analysis compares third-person and first-person points of view (POV) in flat-screen games with VR's unique integration of POV, point of action and point of interaction. VR's intuitive interface fosters a profound emotional response and a heightened sense of presence, breaking the fourth wall and blurring the line between gameworld and reality. This chapter concludes that while VR offers a distinct form of representation, it does not constitute a new gaming paradigm yet. However, advancements in the medium may soon bring VR closer to the immersive experiences envisioned by Janet Murray's holodeck.

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