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Yes, it's going to fail.

VR is just not good enough yet.

And even when it actually becomes ok in 10-20 years the market will be small, i would rather play on my TV, don't really see the appeal of playing with a headset attached to my face tbh.

Sony is wasting time, just like with the Pro, nobody ever really asked for it, games look and run fine on the first PS4.
Just let Microsoft flop with the expensive Scorpio and continue to sell slims like crazy, most games won't even use the power of scorpio when multiplats sell 2 or 3 times better on the PS4.