KITCHENER - Inside a former factory, paying customers battle a fire-breathing dragon from the pitching deck of a pirate ship bound for a remote island in the South Seas.

If they prefer something a little more terrestrial, they can defend a sacred obelisk from woodland creatures and monsters.

Using some of the latest virtual reality technology, coupled with original games designed for multiple players, Mirage VR opened for business Friday in the former Boehmer Box building on Duke Street.

Chuang Li, co-founder and chief executive officer, and Rui Lin, co-founder and chief technology officer, met while studying computer science and business in a combined program offered by the University of Waterloo and Wilfrid Laurier University.

"Playing games was always one of our obsessions," says Li. "So we channeled that energy into creating our own games. It's been quite fun, but I must say, making games is difficult."

Mirage VR bills itself as the first hyperreality experience centre in Canada. It uses motion trackers, Oculus headsets, headphones and small computers containing a powerful graphics processing unit. Wearing all this equipment, players move through the immersive world, and physically interact with the virtual creatures around them.

"It takes immersion onto a whole different level," says Li. He describes the experience as free roam VR.

Virtual reality arcades usually feature games that are played by one person at a time. The headsets are tethered to computers. Players do not move around the room.

At Mirage VR, a large room is transformed into a virtual world where teams of up to four players work together and battle against fantastical creatures bent on destroying them.

"People can walk around freely as if they are in the real world, and you don't have to worry about tripping over a wire or anything," says Li.

The backpacks hold personal computers containing a graphics processing unit known as the GTX 1070. These GPUs are central to the whole enterprise, and render the fantastical world around the players in real-time.

"The play area," Li says, pointing out the carpeted zone surrounded by the cameras, "is the equivalent of a virtual battle ground."

Motion trackers are strapped to players' feet and wrists. More trackers are on the backpacks and headsets. Secured on steel tubes high above the floor are eight motion-tracking cameras.

"So you get an avatar in-game," says Li "When you look down at your body you don't see a floating ghost, you see your character in your position. When you kick your legs out you will see your avatar's legs move."

Both the games players immerse themselves in - Sherwood Forest and Dragonfire - were created by Mirage VR.

"We don't user any off-the-shelf experiences," says Li.

Players choose from among four possible characters - a warrior, archer, priest or magician. They also pick their own hairstyles and wardrobes. Once the game starts, the players see each others' VR avatars in real time.

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Mirage VR offers two experiences. For $30 per player, a team has 50 minutes to play both Sherwood Forest and Dragonfire. The other package costs $20 per player and immerses the team in Sherwood Forest for 30 minutes.

"It's just like you are in real life except you are in a completely virtual environment doing crazy things," says Li.