Speaking from the perspective of a person who is very into VR. There are a lot of things that have gone wrong. First, Facebook/Meta pushing hard with low-end hardware that caused the existing VR gaming to take leaps backward. PCVR was progressing fine before Zuckerberg intervened. Now the VR space is just cluttered with so many low effort, low res games. None of the big players want to get involved, because everyone is so convinced it is too "niche." Meanwhile, you have people who really want to spend money on VR and there's nothing worth spending the money on.