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I doubt it's VR. Reggie was still quite cold on it recently. VR also still has issues with making people dizzy/sick, doubt that'll go over too well with kids. Mom and dad finding out little Davey puked all over the carpet because he was playing Pokemon VR too long isn't a good look. 

Something like a mobile game console/terminal with some kind of wacky controller that encourages people to gather around and play together is probably more in Nintendo's ally. That's just my guess though.