That sounds like you're describing dactyl nightmare. [1] I played a version where you were attacking pterodactyls instead of other players, but it was more or less identical. That experience is what led me to believe that VR would eventually take over. I still, more or less, believe it even though it's yet to happen.

I think the big barrier remains price and experiences that are focusing more on visual fidelity over gameplay. An even bigger problem with high end visual fidelity tends to result in motion sickness and other side effects in a substantial chunk of people. But I'm sticking to my guns there - one day VR will win.

[1] - https://www.youtube.com/watch?v=hBkP2to1P_c

It is precisely that! My version was wireframe and I can't recall the dragon, but everything else is exactly like I remembered it!

For me this serves as an example.

Few years later VFX1 was the hype, years later Occulus, etc.

But 3D graphics in general - as seen in video games - are similar, minus recent lumen, it's still stuff from graphics gems from 80-90s, just on silicone.

Same thing is happening now to some degree with AI.