Virtual and augmented reality (VR/AR) are expected to revolutionise entertainment, healthcare, communication and the manufac-turing industries among many others. Near-eye displays are an enabling vessel for VR/AR applications, which have to tacklemany challenges related to ergonomics, comfort, visual quality and natural interaction. These challenges are related to thecore elements of these near-eye display hardware and tracking technologies. In this state-of-the-art report, we investigate thebackground theory of perception and vision as well as the latest advancements in display engineering and tracking technologies.We begin our discussion by describing the basics of light and image formation. Later, we recount principles of visual perceptionby relating to the human visual system. We provide two structured overviews on state-of-the-art near-eye display and trackingtechnologies involved in such near-eye displays. We conclude by outlining unresolved research questions to inspire the nextgeneration of researchers.
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