They put out tons of Kinect games, and none of them sold amazingly well and they launched with DEEP discounts. They sold an insane amount of Kinect units and people didn’t turn around and buy the games en masse...
The “they didn’t support it” arguments usually boil down to “the company had an evidence that creating software for the device is a huge risk and potential money sink.”
Microsoft also didn't have the audience for it. How much better would Kinect Disneyland Adventures have done on a platform that kids actually own? Kinect was pretty great for what it was trying to do (
LOTS of problems, to be sure, and motion control struggles even now to provide the accuracy that gamers want to play with, but a camera with infrared projection to measure ToF for 3D positioning is an extraordinarily promising concept.) Also the always-on idea was conceptually smart for how much it could do with a mic and cam and motion sensor active at all times of the console's use (people balked at the privacy implication and whatnot, but now Alexas and home cams are in every home on all day long and they can't even make gaming more fun.) Kinect was ahead of its time and a bold investment in technology, but it was absolutely the wrong company trying to make it happen and it's hard to see how its potential as gaming technology would have been fully realized (and accepted by snooty gamers) even in the right hands.
VR has an even greater problem of the right company bringing it to market with proper content and audience to support it, because it still doesn't have a great answer for the question, "who is this for?"
It's fun new play technology for kids, except kids shouldn't use it because its bad for their eyes and development. It's cool technology for new gameplay systems, except gamers demand buttons/joypads/sticks for their accuracy over motion tracking and also aren't wooed by the lesser graphics. It's novel technology for new audiences to experience something they've never witnessed before, except who's going to spend this kind of money and rearrange their living spaces to play VR for however long it keeps their isolated interest? It's potentially useful technology in the remote work era, except it's still more videogame than real networking and it's still silly to run a meeting with a helmet on. (AR has more potential in the business world IMO, but that has its own challenges.) Unlike Kinect which could be analyzed as "right this, but wrong that and that and that...", it's difficult to even figure what "right this" cases VR has going for it to build upon if they even figure out the "wrong that" issues.