If anything Sony would be more likely to increase the price of PlayStation Plus premium and then give access to portal users to play cloud gaming on it. But either way we all should be 90% sure that cloud gaming is coming to the PlayStation portal sometime in the future.
They already increased the PS Premium price recently, and I assume one of the reasons is that in the near future they'll release PS cloud gaming on mobile.
That would mean having an Android player of PS Cloud gaming, which they could also use in PS Portal and Android TV too.
This would highly increase PS Portal potential userbase, which would require way more servers. And a few months ago they said that were moving part of the budget they had for acquisitions to image sensors and SIE servers. Which I assume means they may release the Android client of PS cloud gaming later this FY.
Unless they also allow individual game purchases from the portal, then all the monetary reason the PS5 console exist is fulfilled by the PS Portal.
Remember the only reason the PS5 exists and are sold at break even is the 30% and PS+ sub.
The guy who designed PS Portal said that its goal was to increase PS5 user engagement even more. Meaning, PS5 players playing on average more hours per day/week/month. They want this because no average a player who plays more is also a player who pays more.
On average there's more than a game sold per PS5, which is what they need to make it profitable. PS+ is profitable itself. They also have the profit of the 30% cut. The PS5 ecosystem already is profitable itself and is their main business. So a device like PS Portal does is to further increase these other PS5 profit sources, doesn't need to generate profits with games made for itself.
And well, on top of that they also have the profits of the SIE games outside PS.
Also VR is a flop in the gaming industry, not just PlayStation.
It isn't a flop. VR is a niche nascent market but pretty likely the gaming segment with the biggest growth.
There is a consensus among market analysts mentioning that even if VR is a nascent gaming market in its early stage, it has been growing for years and is forecasted to continue growing in the mid to long term at a fast pace.
According to Statista Market Insights, the AR & VR market is projected to generate revenue of US$32.1B in 2023 and is expected to grow at an annual rate of 13.75% (CAGR 2023-2027), resulting in a projected market volume of US$53.7B by 2027. The VR Software market worldwide is projected to generate a revenue of US$3.5B in 2023 and is expected to grow at an annual growth rate (CAGR 2023-2028) of 11.40%, resulting in a market volume of US$5.9B by 2028. In terms of user base, the VR Software market is expected to reach 204.8M users by 2028.
Precedence Research mentions that the global VR market size was evaluated at USD 23.92 billion in 2022 and is projected to hit around USD 187.28 billion by 2032, growing at a CAGR of 22.9% over their forecast period 2023 to 2032.
Grand View Research say that the VR global market size in 2022 was $59.9B, being almost a third of it from software. They forecast $435.36B total revenue for 2030 (27.5% CAGR 2023-2030) using 2018-2021 historical data and 2022 as base year for their research.
Mordor Intelligence consider the VR Market size is expected to grow from $54.24 Billion in 2023 to $163.82 Billion by 2028 at a CAGR of 24.74% during their forecast period (2023-2028). They expect that the global user base of VR and AR games will increase to 216 million users and will be worth $11.6 Billion by 2025.
According to Newzoo, the VR hardware install base is grows faster than ever (+42% CAGR 2019-2024), forecasting 46M units in 2024. VR game revenue, its main software segment, is forecasted to more than double from 2021 to 2024 (+44% CAGR 2019-2024).
Technavio claims that the VR market is in an accelerating growth momentum, and expects it to grow at a CAGR of 28.39% from 2022 to 2027, increasing by $17.85B.
Fortune Business Insights says that the global VR gaming market size was $6.26B in 2020 and is projected to grow from $7.92 Billion in 2021 to $53.44 Billion in 2028, a CAGR of 31.4% in the 2021-2028 period.
As a reference regarding CAGR, in tech >10% is great growth and >20% is excellence. And being specific to Sony, they were happy with PSVR1 sales and PSVR2 is achieving their expectation, which is to outsell PSVR1. So no, it's isn't flopping.