Virtual reality was never able to rise above a gimmick. While the technology is used in some pretty impressive ways, one area where it's always appeared a perfect fit but never found any real purchase is powering video game worlds that are immersive like nothing else before them.
Why? Well, that's hard to say. Maybe for as immersive as the environments were supposed to be, the graphics weren't there yet. Maybe the engines powering the games of yesteryear didn't have gameplay that was right for an on-your-face display. Or just maybe, you know, people don't really want to wear big bulky headsets while they play a game.