Do people honestly think Microsoft is gonna make a VR headset and support it with exclusive titles when non-VR offerings are so few already? I find their messaging so confusing, why would they announce VR support years in advance and then quietly drop it? Why this half-hearted commitment from them always?  I always took it as meaning Oculus support with some cheap Oculus ports for Scorpio seeing their current partnership. Besides they may have looked at the current market and deemed it's not worth entering anymore.

They never believed in VR imo, they just didn't want to be left behind if Sony is making serious $ in a new market, a market Sony is trying to create since 2011. VR wasn't a passion project for them like it was for Sony, Valve and Oculus(pre FB purchase).

Has Microsoft decided not launch its latest Xbox iteration, Project Scorpio, with VR? The removal of “high-fidelity VR” from the latest Project Scorpio website banner suggests this might be the case.

VR support looked to be a certainty for the upcoming console, having not only been listed on the aforementioned website but also as a feature listed on a banner at last year’s CES tradeshow. Indeed, the console’s surprise appearance at AMD’s booth had advertised Project Scorpio as offering both “4K Gaming” and “VR”.

But “high-fidelity” has not made an appearance on a new banner, fueling speculation that Microsoft does not intend to offer Oculus VR support for the console.

http://wegotthiscovered.com/gaming/microsoft-remove-vr-scorpio-feature-website/

True high-fidelity VR on Scorpio doesn't exist anymore! 

That means MS couldn't deliver a true-high-fidelity-VR-capable Scorpio at a reasonable price point, or Phil and the gang were making exaggerative claims that were Bound to be Scaled back.