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Gunpei Yokoi never needed redemption.
He followed a passion; something that genuinely excited him, creatively.
That is to be commended.

Nintendo offered a talented individual the opportunity to work on a project.
A project: an engineer like him, could wake up in the morning and be intrinsically motivated to work on.

Look at Valve:
A company that offers its employees freedom.
VR is being worked on, because it presents exciting new challenges to overcome.
VR is rewarding win or lose.

The Virtual Boy was a Nintendo experiment that made its way into a product.
There is no shame in it failing.