Or will it end up as a niche market, like motion controls?
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It will become a niche, but a large one, sort of like monitors with high refresh rates or high quality driving and flying peripherals. It's not going to be in every household, but with Star Citizen on the horizon and Unreal 4, Source 2, and Unity all trying to make VR support simple to implement, I can see a large number of games being compatible.