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Marth said:

I think people have way too high expectations on this one.

Pretty sure Nintendo intends this to be a showcase rather than the full fledged experience.
And I also don't see Nintendo to fully enter the VR market anytime soon.
Labo kits are designed to show new ways to play thanks to the Switch.

I think it depends on how you define soon. They're clearly dipping their toes in here. Considering the potential of the Switch and how it's demonstrated here, I'm feeling like this is a sign that the Switch 2 will have a VR form factor to complement the portable and home console form factors. This little experience here is just their way of telling us "No really, we are interested in VR." They've said they are several times, claiming that they're keeping their eye on the space, with nothing to show for it. Well now they have something. But the Switch as it is just isn't capable of a proper VR experience. The Switch Pro, if it's real, will take it in the right direction and allow for more sophisticated VR experiences, but still not on the level that PSVR provides. If they do continue to develop small experiences like this, especially if they start being exclusive to the Switch Pro, you'll know they're courting their audience to give VR a try, and want it to be a part of their future. In which case I can easily see Switch 2 launching 2024 with hardware on the level of a PS4 Pro, full VR capabilities on the level of PSVR, packaged with a cheap plastic headset that the tablet can plug into to be a VR headset, and a really good launch VR experience, like perhaps Metriod Prime 4? Or maybe the next Zelda with a 1st person mode?