VB was seriously hampered by lack of colors and raw horsepower. However... the power is available now..as are cheap hi-res displays.
From what I recall reading. .. Nintendo was considering 3d display on one of their consoles..such as the n64. Even Sega tried to make a VR setup for the Genesis... but it was horrific by read accounts. Still, one of my favorite 3d games is: missile defense 3d... for the SMS.
The WiiU, shows Nintendo seems to be trying to shift gaming to be mobile & personal. As in, its "your" machine... rather than a shared box.
Display tech was abit of a stumbling factor in many recent systems. From different ports, to different standards of resolution.. and even different aspect ratios. The display tech is speeding up exponentially. .. so a console designed today... may not be very cutting edge when released to 8k laser projector style output. .. and whatever new HDMI varient needed to even be compatible.
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Making games open ended in compatibility... usually means sacrificing performance and gameplay accuracy. Thats the whole reason why they want a console... so there is a locked-down hardware& software environment. No surprises or incompatibilities.
And while VR & ugmentation was challenging, limited, & expensive.. in years past.... its now very viable. They even sort of prepped the expense and progrmmers experience. .. when they used dual screens on their handhelds.
Btw...If nintendo released a phone os.... id prob. Switch in a heartbeat.
All phone os's / interfaces, are wretched.