There's no doubt that VR will suck up a huge amount of the hype this holiday. But it's going to be far more expensive, and what choice does Nintendo have?
2016: Nintendo shouldn't launch due to VR
2017: Nintendo shouldn't launch due to 2nd gen VR and new PS4/XB1 slim
2018: Nintendo shouldn't launch due to hype building for PS5 reveal / falling between generations
2019: Nintendo shouldn't launch due to PS5 / XB2 launch
2020: Nintendo shouldn't launch due to them being bankrupt due to sitting on the pot for 5 years. RIP Nintendo
...and so on and so on. There's never going to be a good time to launch when you're the underdog in a competitive market, you've just got to do it as best you can and get it over with. They can't ride 3DS and Wii U for another entire year.
Hey....are you an analyst?
This post sums it up perfectly. This year is at least as good a time as any to launch a console and/or handheld.