Color me skeptical but they said the same thing about NES Power Pad: https://en.wikipedia.org/wiki/Power_Pad
I think it's more likely that people will be even more zoned out as you can't even move your hand up and down in front of their faces to block their line of sight to the TV.
> If I am right, over the next five years we will see the following:
> 1. Lower price point and maybe the ability to finance the hardware (like your cell phone).
> 2. 100 million devices distributed. Without a significant number of users the best founders won’t get serious about building for VR over building for web/mobile.
> 3. New frameworks. Building and iterating VR apps is going to have to get a lot easier.
> 4. Large companies solving the primary hardware problems: headset and input innovation plus distribution. I think this might be too expensive for startups to tackle.
None of these predictions involve any insight into VR. Replace the word VR in #1, #3, or #4 with any tech at any point in recent history and you can make the same statement. I also doubt #2 will happen. The smartphone revolution was a natural evolution of expanding communication devices that people already had into devices that were more useful. VR requires an entirely new set of hardware (for the display component) that isn't anywhere near as approachable as going from a flip phone to a smartphone.
> Recently I’ve heard a lot of investors say “There isn’t a whole lot of new stuff to do in consumer. There’s already an app for that.” With VR, there isn’t already an app for that.
> I think we are no more than two years away from an explosion of new consumer startups and I cannot wait to start funding them at YC.
This I agree is definitely coming though I have my doubts about it being anywhere near the scale of smart phones or the push to make all things web. I also think there's going to be an even higher "dud factor" with VR startups than the already high rate for consumer focused startup. Let's see what happens!