Earlier quoted context omitted.
FWIW their AR stuff was really weird. It looked stupid when I saw it at a convention. I would have dumped them too. If they had been doing Oculus Rift type stuff I'm sure they'd still be at Valve.
I was actually pretty impressed by CastAR. It's certainly the most compelling AR-esque experience I've tried. It opens up a different set of game possibilities than a VR headset like the Rift. Think augmented multiplayer tabletop games rather than immersive worlds.
The tabletop market is already small and the only reason they can turn a profit is because their costs are low.
AR tabletop games would have an even smaller market and also be more expensive to produce.