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Sony gave up on the VR2 before it was even released. No promotion, hard to even find the games in the store, no free VR games in PS+, barely any investment in developers and exclusives. I don’t understand why anyone would expect a better outcome.
PSVR2 died because it’s not backwards compatible with PSVR1.
That’s another reason, yes
Sony gave up on VR when the PS5 launched without it.