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
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.