No 2D games dont work with VR.

Nintendo would need to start makeing alot of Mario 64 / mario sunshine type games if they wanted a VR headset to work.

probably not the moment for Nintendo to bring back VR

eye tracking just very recently became good enough to allow for unintrusive foveated rendering (only a tiny bit of the screen is actually rendered at full resolution saving lots of processing power > way higher resolutions/FoVs possible,so imo that's the #1 thing to heavily improve the VR experience) and implementing it in a headset probably still is very expensive - I think it will be ready for use in $300-400 headsets in 3-4 years (just in time for PS5)

I don't think it's worth it for Ninten. There are already enough of these devices coming out soon, so Ninten would possibly only see a portion of profits, if any, if they entered the race as well. Plus it's uncertain if VR will even take off. So it's too risky for Ninten to try to pursue it as well. They're better off doing something else, or just playing it safe.

They can't even sell their home consoles and should go VR? Doesn't makes sense.

They'd need the hardware capable of running it first. 90fps with a high resolution isn't easy, psvr has a processing unit to help ps4 run it.

It will look really good:

Honestly, I can see Nintendo succeeding at hololens (or whatever the augmented reality thing is) and think it'd be more in line with their position in the gaming space. having a group of friends around a table playing Mario Party 8 on hololens seems like a pretty freaking great thing.

Yeah, for sure. VR just doesn't resonate with Nintendo's current software philosophies. Others are getting in on it just because they can and it'll be a territory that nobody has won yet.

Too expensive.

Yes, it would be a waste...

I feel I said this a lot already, but VR is still too expensive now for the average consumer to purchase.. given that you need to buy the console first and then the VR peripheral, it's really expensive.
VR will be popular in the future, but not now