As much as I'm bummed that Microsoft never brought VR to Xbox, and that they are removing Windows Mixed Reality support soon, Microsoft definitely made the right business choice on tethered VR. There are too many things that make the total addressable tethered VR market too small for games to sell in profitable volumes.
I'm still very bearish on all VR, at least in the next 5 years, but if it succeeds it will only be as a completely standalone device like Meta Quest or Apple Vision Pro. Meta Quest outsold PSVR2 30:1 this past holiday season.
I think the business case just isn't there. There aren't even a million PSVR2 headsets in the wild. Windows Mixed Reality got to at least 2 million units and didn't matter at all as a platform to target.
I'm still very bearish on all VR, at least in the next 5 years, but if it succeeds it will only be as a completely standalone device like Meta Quest or Apple Vision Pro. Meta Quest outsold PSVR2 30:1 this past holiday season.