I've always defined 'presence' informally as 'the feeling there's a real person at the other end'. Educators will be familiar with the concept of presence as described by Anderson, Archer and Garrison. This article describes 'presence' as "a feeling of being in a place other than where you are." presence is "the secret sauce that makes modern VR magical." What's significant is that presence isn't created by the medium, it's created by the perceiver. So we don't need 100% fidelity to generate presence, just enough of the key ingredients needed to convince the mind that we're some place talking to someone. This article looks a bit at what those ingredients are, like image stability and refresh rate.
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