It's sustaining. I'm not sure there's any momentum to grow it yet. But we'll see how Half-Life performs.
To put it into perspective, all VR thus far still hasn't outperformed the original Xbox. And games on VR are still very VERY far behind where games on Xbox were. VR is still sorely lacking robust full game experiences.
But there are a lot of potentially tantalizing glimpses at some of the potential, but almost all of them still have many flaws that detract from them.
Beat Saber is still, by far the most impressive VR title released to date and the only one thus far with the potential for mass market appeal. The fact that it's arguably the only one at the moment, however, seriously hampers widespread VR adoption.
While I'm sure VR enthusiasts that haven't quit on VR yet (I know plenty that have given up on VR, at least for the time being) will argue with me, but sales don't back that up so far.
The Oculus Quest is currently the most consumer friendly VR device on the market and it still isn't generating massive sales or giving the VR market much momentum.
The infographic that Tottentranz posted above would indicated that at that point the VR gaming market (not including people that try it on mobile and then immediately stop because it's not worth the hassle) was around 8 million or so. The original Xbox sold 24 million and was considered a flop/failure. Basically trying to compare it to consoles isn't a good idea. But then there aren't many successful tiny niche hardware gaming platforms to compare it to.
It's been about 3.5 years so far for this generation of VR, so there's always a chance it'll take off at some point. But currently there is nothing to indicate that it will.
I'm not sure whether Half-Life Alix will change things or not. I'm leaning towards it giving VR hardware sales just a minor bump, but we'll see.
VR still has far too many compromises to make it something most people want to buy. Hell, Sony has the best chance to push it. But even still, only around 5% of PS4 owners have gotten one.
Regards,
SB