Jean Baurdillard puts it pretty simply...
In our postmodern society, we have developed such reliance on 'virtual reality', we have actually lost touch with our true reality that preceded these technologies, platforms, models, applications and maps (cited in Felluga 2011b).

Hyperreality is defined as simulations or images that "distort the reality it purports to depict or does not in fact depict anything with a real existence at all, but which nonetheless comes to constitute reality" (Collins English Dictionary, 2013). Take a look at Jean Baudrillard's 'hierarchy of simulation' which consists of 4 levels (orders).
EXAMPLES OF SIMULACRA...
a life simulation game that depicts life as we know it. "....lets you play with life like never before. Create and control new Sims with mind, body and heart. Build their unique worlds" (The Sims Official Site, 2013)
modern role-playing fantasy game
a representation (generally graphical) of a online user and their characters/ego's etc. These may be employed in virtual games or as an icon in online communities, forums, video clips
mechanical machines controlled by computers or electronics, which enable replacement of humans!
CHECK OUT THIS YOUTUBE CLIP - very interesting!
Baudrillard, asserts that there are 5 main causes of simulacra evolving:
1. MEDIA CULTURE... contemporary media (internet, TV, film, magazines) controls us as consumers by playing on our desires, needs and wants, encouraging us through virtual and fictional concepts and images, to move from reality to hyperreality. Encourages us to remove ourselves from reality (Felluga 2011b).
2. EXCHANGE-VALUE... the capitalist culture converted citizens from purchasing goods in terms of use-value, to instead terms of 'what can it be exchanged for, how much is it worth'; hence exchange-value. This has created a loss of material value and appreciation of 'real' goods, instead a culture based around money and personal gain (Felluga 2011b).
3. MULTINATIONAL CAPITALISM... As industrialisation develops more complex processes, we are losing touch with the basics and the underlying reality of the production of goods/services including the material labourers. For example, how many could 'identify the actual plant from which the coffee bean is derived from?' (Felluga 2011b).
4. URBANISATION... through its expansion & development of geographical boundaries, it creates a larger space and hence citizens get lost in a large world; losing touch with the natural world (Felluga 2011b).
5. LANGUAGE & IDEOLGOY... Baudrillard asserts that we rely so heavily on language to 'structure our perceptions' and language in modernity today is constructed by simulacra. Therefore, this is another avenue that allows simulacra to overcome true reality (Felluga 2011b).
Jean Baudrillard argues that through simulacrum, we have lost the ability to distinguish between reality and representations (Felluga 2011b). Baudrillard posits that through modernity, real life and virtual fiction are being blended together so that there is no clear distinction, lulling humans into a false world. Humans are becoming absorbed into an online world where you can control interactions, feelings and emotions...
Sherry Turkle's (2009) research suggests that the online virtual world; communities, games and interactions are numbing individuals, especially adolescents. The virtual world allows our youth to escape and short circuit tough face to face conversations and uncomfortable situations, that are not controllable through a device.
My thoughts...
It encourages adolescents especially, to step out of reality and lose touch with 'real' emotions, feeling and empathy for one another; desensitising the generations that are forming our future! Connecting and somewhat escaping online is disadvantaging kids by diverting them from learning and gaining experience in basic social tools that enable 'real' personal growth and self-esteem.
References
References
Anon., 2013. [Online]
Available at: http://www.collinsdictionary.com/dictionary/english/hyperreality
Available at: http://www.collinsdictionary.com/dictionary/english/hyperreality
Felluga, D., 2011. "General Introduction to
Postmodernism". [Online]
Available at: http://www.cla.purdue.edu/english/theory/postmodernism/modules/baudrillardsimulation.html
Available at: http://www.cla.purdue.edu/english/theory/postmodernism/modules/baudrillardsimulation.html
Hedges, W., 2010. Art & Technology 8.2 Baudrillard
& Simulacra. [Online]
Available at: http://www.youtube.com/watch?v=8MmSPo5gg2E
Available at: http://www.youtube.com/watch?v=8MmSPo5gg2E
Swinburne, 2013. [Online]
Available at: https://ilearn.swin.edu.au/webapps/portal/frameset.jsp?tab_group=courses&url=%2Fwebapps%2Fblackboard%2Fexecute%2FdisplayLearningUnit%3Fcourse_id%3D_149973_1%26content_id%3D_3796657_1%26framesetWrapped%3Dtrue
Available at: https://ilearn.swin.edu.au/webapps/portal/frameset.jsp?tab_group=courses&url=%2Fwebapps%2Fblackboard%2Fexecute%2FdisplayLearningUnit%3Fcourse_id%3D_149973_1%26content_id%3D_3796657_1%26framesetWrapped%3Dtrue
Turkle, S., 2009. Interview Sherry Turkle [Interview]
(22 September 2009).
Vaughan, R., 2013. Introducing the Sims 4. [Online]
Available at: http://www.thesims.com/en-au/the-sims-4#/what-is-the-sims
Available at: http://www.thesims.com/en-au/the-sims-4#/what-is-the-sims
