VR hasn't really set the world on fire. PSVR has sold 3 million which i think could be considered a OK number. I think any investment Nintendo does in VR right now will be at the Universal Nintendo Land park

I don't think Nintendo would try to compare with VR headsets.  They would want to provide a fun gaming experience that most people can enjoy, period.  It will probably be a light-weight cardboard housing for the Switch body like Google Cardboard, but probably more comfortable.  It wouldn't require the wires that the other systems do as long as it also had built in sensors for it, because it is the system.  It would be much more consumer friendly.  Will it be as immersive as some of the $1000+ setups people have right now?  Who knows.  I think where some people are getting hung up is that they are trying to compare Switch doing VR to Oculus or Vive or PSVR.  Switch VR would be the way Nintendo wants it to be and they would make sure it was impressive and fun enough to warrant development, or they won't do it. I think with the right R&D and partnerships, they can put together things you will not expect. 

That is because it is cumbersome. PSVR is not fully mobile and the resolution is pretty low compared to Oculus and Vive. On top of that, you still have the cords, setup, and then there is the price.  "I just bought a PS4Pro for $400, I don't want to spend extra for VR, how about I get more games instead" etc. etc. Also besides Doom, Skyrim, and Resident Evil 7, there is no killer app that is marketed well to encourage people to buy it. And those games have been sold how many times now?  On how many systems? Way too many problems currently with VR, but I recently bought an Oculus and I will say, that it was well worth the cost even though the headset is heavy and hot, and I have to ensure a good area to play in, and wires, and batteries, and blah blah blah.  It is still an amazing experience that I would not have traded.  

If you can give a similar experience in a lesser involved and price-effective setup with a killer app, then you will have yourself sales.

Light cardboard housing that is functional and comfortable, a stand alone switch system with controllers, no wires, Metroid Prime 4, Mario Kart.  THAT will sell. 

Even if existing Switch owners have to buy an upgraded body, they will still have 2 systems that they can play multiplayer with or give to a friend or family member, or sell it.  With PSVR you will spend that much and still only have equipment for one system and one person.

This makes me wonder if they could make a free DLC for the VR mode to add onto Mario Kart 8 for those who buy a Switch XL model and already own Mario Kart 8.  If they tagged it on then it would save them resources for other things and they would capitalize on the already huge install base of Mario Kart 8 Deluxe.  The main point against that is that Mario Kart 8 has a lot of disorienting tracks.  For a VR experience, it would likely require simpler more fluid tracks.  I'm sure they would work those decisions out in development and testing.  Maybe limit VR mode to 100cc or something.

I could see Nintendo trying this with the Switch's successor, but that will be in about 5 years.

Or it could be something built for Mario Kart 9 ... I mean think about it, people are saying "well MK9 wouldn't be much different from MK8 so what's the point" ... except a VR mode would be a pretty huge addition to the franchise. 

Switch 4K VR will come in 20 years. Good predicting with you.

I think it could go either way.  Kinda like they did with Smash.  Even before it was announced, based on other bold Switch decisions and the Wii U ports, I knew Smash on Switch would be based on the Smash 4 engine and be a culmination of all the Smash titles before it with a bit extra, but they went Full Monty on the thing to where it is a whole new and definitive title.  So while I was right, I was also wrong.  But I assumed that they wanted to get their big guns on the system quickly to reuse their Wii U assets to build up sales for Switch so that 3rd party developers would support it faster. Because of this, I also thought they would release it earlier, like in May where Mario Kart 8 Deluxe was last year, but instead they opted for a weaker Spring to push expected titles back into 2019 and make Smash a bigger deal to hold up 2018.  Why?  There has to be a reason why they were initially so confident that this choice would be the better....  I think it is because they are playing a "long game."  They are using these titles to buy time toward other things.  Perhaps to fill up 2019 knowing Metroid would be delayed, perhaps to spread things out to prepare more titles for a VR launch in a year or two,...  Who knows. 

It all boils down to how many resources they have to give where, and unfortunately we don't know all the projects they have in mind.  I like the idea of having a new Mario Kart title and if making a slimmed down version of the existing Mario Kart VR or creating a simpler kart experience is more time and gameplay effective, then they just might.  I also like the ideas of Splatoon 2 VR, Pilotwings, ARMS definitely (would prefer a sequel).  Metroid Prime 4 would definitely be the Zelda of the VR iteration, but I'm sure they are working on another Zelda title built on the BoTW engine that will use it too if it's a thing. I guess we'll see how it plays out.  

Go home, your drunk....

Doesnt necessary means they will work on VR first, they actually mentioned few times AR possibility.