A new VR arcade opened up in my area and I visited with my son. They were using HTC Vive headsets, which retail for $1,000+. It’s the first time I really used VR, especially in a couch coop mode setup. The following struck me: (1) There is no killer, must have game for VR. Beat Saber seems to be the most popular and mainstream game but not nearly engaging enough to convince the mass market to buy one or more VR heads…
I strongly disagree here. The enterprise market is relatively cost-insensitive, and so it's a great vertical to target. The partnership with Microsoft is strategically very sound; if you can get Teams inside the Quest headset, then you can plausibly replace every lightweight Windows laptop with a Quest Pro (i.e. for road warriors doing spreadsheet/doc/email/collaboration work, not developers).
The question is, how far away are they from replacing monitors with VR displays? I suspect this generation is not the one that wins that battle (though Immersed was making this work on Quest 2, so maybe), but it plausibly could be next generation, in which case this is the correct time to be building the MS partnership.
On gaming -- we are multiple generations away from VR being more than tech demos, IMO. Beat Saber was fun, but pretty much everything else feels boring after 30 mins. I agree with your assessment that VR gaming is quite underwhelming, but I disagree that they need to win over geeks to crack the enterprise market; they just need to get Nadella on stage to provide a compelling use-case to enterprise users, talking in the enterprise language.