Existenz: The Future of Augmented Reality?

Existenz, a film by David Cronenberg, deals with the idea of inserting players into a virtual reality by directly inserting the game controller into the person's body. This occurs through a hole placed on the base of the spine that leads to the spinal column. Being actually placed into the game world, the players begin to lose their reasoning, forgetting the difference between "real" and virtual as the game takes indirect control of their actions.

Is there any truth to this premise? The answer is simply yes, it is definitely a possibility. There are many ways this is possible. One of the newest and most widely known examples is the Oculus Rift, a headset device designed to put the screen directly in front of the players eyes, blocking outside interference that could break immersion. This has been extremely effective in horror games, since the player cannot "hide" from monsters without removing the headset and breaking immersion from the outside.
What about in everyday life, not just games? Google has been working on a contact lense-version of their Glass project for some time now. The Glass works in much the same way that a HUD (Heads Up Display) works in many first-person video games. The glasses essentially provide you with the same functionality as a smartphone, except operated by voice commands and projected in front of you eye on a tiny screen. The contacts would work in the same manner, only projecting the image directly into your cornea instead of an external screen. This would be yet another step closer to Existez's future world.
 What can we expect? In a tech world that currently has the Xbox Kinect, Google Glass, Oculus Rift, and a host of other machines dedicated to perfecting alternate realities, is it possible that we could progress to a level where the line between real and fake is blurred? It is quite possible. For now, we have the ability to turn off our consoles whenever we want to leave the game, but what if future games don't want us to leave?

Sword Art Online, an anime dealing with a game that traps its players until they win.