I sometimes wonder if Zuck has ever read a novel or watched a movie because one way he is tone deaf is not understanding the possibilities of fiction.

This VR enthusiast made a great video about the problems of VR games:

https://www.youtube.com/watch?v=5rZRvw7WTq8

My mother in law probably still thinks people play first person shooters but really the sense of characterization in modern games depends on the third person perspective. Bayonetta has legs and knows how to use them. The whole point of a Mario game is seeing Mario on the screen.

The third person view lets you experience a spectrum of identification with a character (I moe for Tamamo, I like Mario, I control Mario, I travel with Mario on his journey, I am Mario, ...) that you can't really experience from a first person view. Maybe you can put on the appearance of a character for other people's benefit in VR but you're going to have use your imagination (for better and worse) to put yourself into a character.

For now the VR game industry is driven by independents. Big game studios could make an AAA game but they won't because there aren't enough players with headsets to justify the investment.

I am betting on the first AAA VR game coming from a Chinese studio as they are taking big chances on new IP such as Genshin Impact from MiHoYo.