Outside of my fiction reading, I just dived into 'Exploring the World of Lucid Dreaming' which deals with a concept closely related to VR. I remember reading that VR use should hightens the chance of lucid dreaming.
Just to recap:
NAM-HI-SUNG: The Legendary Moonlight Sculptor (massive series about VR RPG gaming)
ERNEST CLINE: Ready Player One
WILLIAM GIBSON: Count Zero
WILLIAM GIBSON: Necromancer
TAD WILLIANS: Otherland
GREG EGAN: Zendegi
GREG EGAN: Permutation City
GREG EGAN: Various free short stories from his website, like Wang's Carpets
VERNOR VINGE: Rainbows End (might suck, but got interesting ideas about AR)
VERNOR VINGE: The Cookie Monster (novella)
VERNOR VINGE: True Names (novella)
NIVEN & BARNES: Dream Park (maybe not exactly virtual reality but close)
NEAL STEPHENSON: Snow Crash (Another story in which a virtual reality world has a significant purpose)
JOE HALDEMAN: Old Twentieth (novel where virtual reality is not just entertainment.)
DENNIS DANVERS: The Circuit of Heaven (novel where virtual reality is not just entertainment.)
PHILIP K. DICK: Time Out of Joint (isn't technically virtual reality, but is "artificial reality," a concept borrowed by the film "The Truman Show")
CHARLIE STROSS: Glasshouse
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