Earlier quoted context omitted.
That's what I wonder. Early VR adopters/technologists hate what happened to Oculus and there aren't a lot of newcomers to that market. I don't think cheaper headsets are going to fix that in the near future so I don't know whom they're targeting. Seems risky to lean into something where the experts already think you screwed up.
Quest 2 is outselling past VR headsets by leaps and bounds according to news reports. The decision to make a standalone headset and build their own app platform was absolutely the right one from a growth standpoint, even if the hardcore VR consumers aren't biting. Early VR adopters are going to buy the next best product and have no loyalty.
The required parts to make a 60Hz 1080p headset are entering the $100 cell phone market and that segment of components are more or less what Nintendo traditionally uses in its handhelds.
Nintendo also has a long history of "blue ocean" products that tweak existing technologies to make them more mainstream.