Games aren't neccesarily going to run at 1080p/120fps (most demos were at 60fps up sampled), nor are we going to only see traditional games being forced to be Morpheus compatible.
I think this guys is speaking on behalf of some developers (the conservative ones) naturally but definitely not all. I imagine a lot of original content is in works which is designed for purpose at 1/20th the budget of traditional retail games. I imagine lots of cheaply priced apps being released for morpheus, and if development becomes accessible to the indie scene I they could easily deliver some of the most innovative and talked about content. Tradiotional games with Morpheus compatibility will not be the norm, nor the key selling point although they will be a bonus. Is GTA6 going to be Morpheus compatible? Probably not but GT6/Driveclub 2 will. Overall peripherals are often dependent of made for purpose titles to sell their appeal (wii sports, dance central etc)
Also things can be successful and niche at the same time, It doesn't need to sell 30m copies for it to conjure a successful development environment for devs and make sony profit at the same time. people saying $200 (if sony manage that price) is too much either haven't touched VR or underestimate the expendable income of the average tech consumer. When people spent $250 on the wii, we must know by now that plenty were literally just buying a device for wii sports/wii fit and mario kart. If the gimmick is strong enough it will sell at $200.
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