I'd argue VR did have it's killer app, VRchat, and covid gave them a golden opportunity.

Unfortunately they chased user acquisition hard via non-vr modes and subscriptions rather than enabling creators using their platform highlighting what made such spaces unique. Updates actively made things more hostile to their most dedicated users, it was sad to see.

Eternal September got kicked into overdrive and most dedicated users either got pushed out or retreated entirely to private spaces. Lo and behold the mobile and casual VRless werent interested in spending money, so vrchats been running out of runway.