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If PS VR becomes a hit it's going to accelerate XB1's sales decline.

The demonstrated XB1 support for the Oculus Rift is really stretching the definition of what VR is. It's you playing a regular XB1 game in a virtual movie theater. This is more of a gimmick than actual VR and isn't going to benefit XB1 at all. It might even hurt it if people buy into it thinking they're going to get actual VR games.

To be honest, I don't think VR will ever be a "hit" in the conventional sense. I do think it will carve out a respectable niche for itself though.