Sega VR was never released due to many of the same issues that made Nintendo's Virtual Boy a failure. Among these were how expensive the unit was, its poor graphical capabilities and most notably its eyestrain / headache inducing effects after a short period of play time [1]. However, as with all things SEGA at least we got a cheesy keynote presentation out of it [2].
[1] https://web.archive.org/web/20100114191355/http://sega-16.co...?