VR headsets like Oculus Rift and PlayStation VR are often referred to as HMDs and all that means is that they are head mounted displays. Even with no audio or hand tracking, holding up Google Cardboard to place your smartphone's display in front of your face can be enough to get you half-immersed in a virtual world.
The goal of the hardware is to create what appears to be a life size, 3D virtual environment without the boundaries we usually associate with TV or computer screens. So whichever way you look, the screen mounted to your face follows you. This is unlike AR which overlays graphics onto your view of the real world
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