There is still plenty of demand to sustain the market.Thing is, demand isnt steady, nor is it growing for traditional gaming.
Traditional gaming peaked in the wii/ps3/x360 gen(total of 360m consoles and 230m handhelds) and has declined last gen, with the generation that is on the way looking like it wont reverse that trend(big part because both Sony and Nintendo went from 2 platfroms to just the one).
VR's existence does not mean traditional gaming goes away, or even notably affects the other. Every dollar spent in VR is not a dollar taken from traditional gaming from a static finite pool of resources. But that is how some people in this thread seem to frame things, and that is worth pushing back on. If traditional gaming maintains its relative same consumer support base, it's going to be fine. If VR continues to grow, current and new resources will come online to capitalize.
If we get to a point where VR or AR solutions do what traditional gaming offers better, than maybe we see a tipping point, but at that point, who cares?