The Rocinante Essays

Why Enterprise VR Failed: Episode 1: Overpromising and Underdelivering?

• Daniel Eckert • Season 1 • Episode 1

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Welcome to Episode 1 of Why Enterprise VR Failed, where we unpack the beautiful dumpster fire that was Enterprise Virtual Reality. For decades, tech bros, consultants, and wide-eyed futurists pitched VR as the cure for corporate dysfunction—training would be revolutionized, meetings would be tolerable, and Gary from accounting would suddenly become a combat medic via headset. Spoiler alert: most of that didn’t happen. Instead, companies bought into the hype like it was a 90s infomercial—“But wait, there’s more!”—only to end up with a pile of dusty headsets, one awkward avatar meeting, and an HR complaint involving inappropriate avatars. 

Episode 1 dives into the gap between the hype and the reality of VR’s biggest promises—spoiler: it mostly lives in the “technically true but also completely impractical” category. Yes, VR can boost learning and cut travel costs, but only if you ignore the budget, the user experience, and that tiny issue where no one actually wants to wear a headset for four hours. So before we strap in for Episode 2’s consumer-tech horror show, let’s relive the golden age of promises—when every executive thought VR would save the company, and none of them actually used it.

Why Enterprise VR Failed: A 7 part Series - Episode 1 - Overpromising and underdelivering. 


This audio cast is Part 1 of 7 and extrapolates on the reasons enterprise VR failed by Daniel Eckert, Copyright 2025 Rocinante Research.

Let's get started.

Ever since the McDonnel-Douglas VITAL helmet in 1979, academia, consultants, enthusiasts, and techno-weenies have been promoting the benefits of Virtual Reality to the Enterprise. 

The first real enterprise VR use cases weren’t dreamt up by some hoodie-clad disruptors in a WeWork. Back in the ‘90s (yes, before the Oculus Era blew everyone’s minds by reinventing the wheel) VR was already being used for training and simulation in high-risk industries like aviation, military, and healthcare. Pilots, soldiers, and surgeons were honing their skills in safe, virtual environments long before Mark Zuckerberg decided we all needed avatars with no legs). These simulations offered less risk, lower costs, and fewer real-world disasters—sounds great, right?

Early VR, however, had significant challenges. It was ridiculously expensive, clunky, and about as scalable as a homemade database running on an intern’s laptop. Which meant only enterprises with bottomless budgets and a questionable sense of financial responsibility could afford it (like governments, academia, the military, and a few corporations). And yet, here we are, decades later, with tech bros breathlessly proclaiming they’ve just discovered… fire.

Did VR do all the things the salespeople and consultants promised?

Ah, the pure joy of analyzing these promises—like unwrapping a big birthday present, only to find a smaller birthday present box wrapped inside… and another… and another... until you finally hit the last one which contains a $5 Starbucks gift card to thank you for signing up for the beta.

Before we can dig in to why things failed - it's important to understand what VR benefits were sold to the Enterprise. Episode 1 of this series will focus on the most common claims to determine if the Enterprise bought a first-class ticket on the hype train – or if they got their money’s worth.

Before we start, here's a recap of Episode 0.

During the prologue, we introduced a list of the eight most common promises VR would bring to the enterprise. 

It would train employees faster, make meetings tolerable, streamline design, sell products before they existed, reduce travel, cut maintenance costs, and even save lives—all while boosting employee happiness and engagement. 

Basically, VR was sold as the Swiss Army Knife of Hype. A VR magical cure-all for... well, everything. 

Let’s unpack these promises, sift through the hype, and point out what’s actually real (yes, with studies and references). And for every bold claim, we’ll sprinkle in Rocinante’s real-world insight.

There is a written version of this episode found at Medium dot com slash emerging tech, where you can find tables, graphics, and hyperlinks to help illustrate and support many of the points highlighted in this audio cast. 

Point Number One: Revolutionize training! Employees will be smarter and learn faster.

If Enterprise VR had a hype leaderboard, this point would be sitting at the top, dangling by a Ted Talk lanyard and referencing white papers it hadn't read. Here are the most common points made.

First, virtual reality training claims to help employees learn faster and retain more information.

Second, it promises that employees trained in VR are actually smarter than those who sat in a classroom or clicked through an e-learning module.

And finally, there’s the big selling point: learning by doing—something VR excels at—is supposed to improve memory retention far better than reading a manual or watching a video.

Research backs the hype: PwC found that employees trained via VR learned up to four times faster than those in traditional classrooms and were two hundred and seventy-five percent more confident applying their skills.

A 2021 study in Annals of Translational Medicine showed higher pass rates with VR-based training compared to traditional methods. And while “smarter” is subjective, metrics like speed, confidence, engagement, and retention all point to VR’s effectiveness.

Dr. Drsameh Abdelhay adds that VR’s immersive environments improve outcomes by letting employees safely practice real-world skills—without, you know, actual consequences.

What is Rocinante's point of view: Yes, —seriously, this is spot on.

Just don’t expect Gary from accounting to take a VR course on Advanced Underwater Basketweaving and suddenly emerge as a “Nautical Fiber Arts Specialist.” Best case? He learns to weave a basket underwater. Worst case? We refer him to HR to explain why he's walking around the office in a scuba suit.

Help me understand why traditional training methods—like classroom learning or e-learning—often struggle to mimic real-world scenarios.

Because reproducing a training environment that mimics a production environment is in not exactly budget friendly. Plus, let’s tell the truth—how many times have you actually paid attention during an e-learning module? If clicking “Next” while half-watching Tik-Tok videos was an Olympic sport, we’d all be gold medalists.

Humans usually learn best by doing—it’s just how we’re wired. Of course, that’s a generalization, but if the old saying “Those who can’t do, teach” has any truth to it, then surely “Those who actually do the work, just wing it until they figure it out” must be equally valid!

So why is VR training so effective? 

It traps learners in a digital world where distractions can’t reach them! No Instagram, no doom-scrolling on X—just you, your lesson, and the terrifying realization that there’s no escape until you can demonstrate you learned something.

Point Number Two: Transform meetings! You’ll love collaborating in virtual reality!

Here’s what the hype-monsters are selling:

Traditional video calls lack the human touch. VR meetings, they claim, boost communication, engagement, and user satisfaction by putting everyone in a shared 3D space where you can interact with objects and colleagues—no matter where in the world they are.

Surprisingly, the hype isn’t total fiction.

A systematic review in The Journal of Advances in Information Technology looked at 46 studies and found that immersive VR meetings do enhance communication—but also increase cognitive load. So yes, more engagement… but also more brain melt.

A Frontiers in Virtual Reality study praised VR’s spatial magic but flagged one major issue: no one can read your face. Facial expressions matter, and talking to a dead-eyed avatar isn’t quite the same as a raised eyebrow or a knowing side-eye.

And Dr. Dani Paul Hove’s research on video conferencing vs. XR? They basically said Zoom fatigue is real, and VR might just be the cure—if you can get past the whole “strapping a computer to your face” thing.

So what does Rocinante say?

The hype is kinda true. Not a lie, but definitely not a universal fix. It’s great for remote teams, but it’s not replacing Zoom, Teams, or the other four hundred and ninety-seven other meeting platforms anytime soon. 

What about large VR meetings?

It can work—finally, a space where dressing like an 80's punk rocker isn’t frowned upon. But there are catches: weird avatar eye contact, dead batteries mid-meeting, and the occasional Wi-Fi hiccup that leaves someone frozen mid-gesture like a haunted mannequin.

What about smaller VR Meetings?

Small to medium-sized VR meetings (think 5 to 50 people) can be incredibly productive if you treat them like real workshops. But 100 or more people? That’s like herding sugared up toddlers that are jumping on a trampoline. Technically it is possible, but good luck.

Will you love collaborating in virtual spaces? 

Well… do you enjoy legless avatars? Do virtual whiteboards make you scream? Does it terrify you when a co-worker’s head detaches mid-sentence because they took their headset off to text? If not—congrats, you’re ready for the future.

It sounds like you are a fan of VR meetings.

I’ve hosted over 1,000 immersive meetings. Only a few folks—like Chris Madsen from Engage XR and Christoph Fleischmann, the CEO at Arthur Technologies have hosted more. I’ve used VR for closing multi-million-dollar deals, onboarding new employees, classroom sessions, board meetings, disaster relief, and even watching Champions League finals with the team. I’ve tried most of the platforms including Immerse, Altspace, Mesh, Horizons, Spatial, Glue, Engage, Facetime, and Arthur. I am a fan—but we’ll get into user experience challenges in a later episode. Just know: during the pandemic, this was the killer app for remote teams.

Point number 3: Streamline product design! What could go wrong?
In industries like architecture, engineering, and product design, VR promises real-time collaboration on 3D models—teams visualizing changes like they’re all in the same room, tweaking designs on the fly, and unlocking next-level innovation. Instant adjustments! Instant decisions! So futuristic it practically needs its own soundtrack.

Honestly? The reality isn’t far off… but with caveats.

A study in eye triple E explore looked at how VR is used in industrial design education. It found adoption was limited, but with more integration, VR could really enhance design outcomes.

Another review in Electronics analyzed 86 sources and concluded that VR has solid potential—from early concepts to full-blown product evaluations. Visualization improves, collaboration gets a boost, and design can move faster—if the stars align.

What is Rocinante's thoughts on this? 

Absolutely—no fibbing here. VR can be great for design, but here’s the catch: it’s effective in specific cases, not a magic wand for every process.

It works best when your workflow already makes sense. If your team’s still arguing over file formats, don’t expect a headset to save you.

VR is a solid tool—not a revolution. It shines in the broader design process… especially when your boss insists on blessing every pixel with their superior design instincts.

So, in other words, "If your workflow sucks, no headset is going to fix it."

“El punto número cuatro” . Show customers the future before it’s built! No pressure.

Here is the buzz that marketing has been filling our spam folder regarding this point. 

VR prototyping enhances customer engagement, provides valuable user insights, and improves the ability to collect how users feel by allowing them to interact with and provide feedback on products or services before they are built.

VR can recreate service experiences in a highly immersive, agile, and cost-effective manner, allowing users to have a representative service experience and enabling designers to extract high-quality user feedback.

Not to mention that VR allows customers to experience products or environments virtually before making a purchase.

I know it's a first, but marketing may have stumbled upon something here.

Academic research supports the assertion that utilizing Virtual Reality to present customers with prototypes of future products or services offers significant benefits. A study by Dr. Costas Boletsis published in Multimodal Technologies and Interaction examined the application of VR in prototyping service journeys. They introduced a new service prototyping method called the “VR service walkthrough,” which was evaluated through an empirical comparative study.

What does Rocinante say?  Yes, this is so true.

Guessing what customers want is so last century. Letting users poke, prod, and play with a product before it’s built means fewer surprises, better feedback, and less “Well, that was a terrible idea”.

In real estate, automotive, and retail, VR turns “just looking” into “shut the hell up and take my money.” Browse a Malibu mansion in your pajamas, no awkward realtor required. Take a Lambo out for a spin without worrying about speed limits or wrapping it around a tree. Try on a hundred outfits virtually - no judgmental store clerks.

What you are saying is VR provides more engagement with a product, more confidence that you are building the right thing, and fewer buyer’s remorse therapy sessions.

Point number 5. Save lives with surgical simulations! Just like a video game!

Here’s the corporate chant VR development houses have been peddling.

VR simulations are the ultimate training experience—and they’re safe.

They’re also pitched as ultra cost-effective, offering a risk-free environment where employees can practice dangerous or complex tasks without real-world consequences.

In oil and gas, that means running emergency drills without stepping foot on a rig. In healthcare, surgeons can refine skills through virtual procedures without ever touching a patient.

In other words: you get to practice blowing things up or saving lives—without the risk, the mess, or the massive price tag that usually comes with it.

Oh, wait... it appears marketing may have got this right too.

It does appear they know what they are talking about. There's even research to back it up. 

A study published in Cureus compared the costs of VR training to traditional live exercises for hospital staff. Initially, VR training was slightly more expensive per participant. However, over a three-year period with repeated sessions, VR training became significantly more cost-effective, demonstrating notable long-term savings

An article in Medicine examined the cost-effectiveness of VR simulators compared to traditional wet laboratory training. Despite higher initial capital costs for VR simulators, the study found that their relatively low recurring costs favored long-term cost-effectiveness.

What does Rocinante think?  Yup, VR simulations are the ultimate training cheat code; it’s the real deal.

What are the all-star use cases? 

Workplace safety, emergency response, disaster preparedness, driving and flying simulators, medical and surgical training, training manufacturing processes, customer service, and conflict resolution—basically,VR training is perfect for any scenario where screwing up in real life would be very expensive or very embarrassing. It's also great for jobs where there is high employee turnover like call centers, customer service, and warehouse operations. 

But isn't building traditional classroom training less expensive than building a VR simulation? 

If you factor in the long-term benefits, VR starts looking more attractive — kind of like a gym membership you actually use.

One last point —VR eliminates the need to build large training centers, dealing with broken training machinery, or worrying about trainees setting things (or people) on fire. It’s all synthetic and in VR, the only real danger is putting an executive into a headset and having them get sick.

So what you are saying is the real magic of VR is in long-term savings: fewer accidents, faster time-to-proficiency, improved quality, better retention, and fewer costly mistakes. Basically, VR pays off if you zoom out and do the full ROI math.

Point Number Six: Reduce travel costs! Who needs to fly to Barcelona for Mobile World Congress when you’ve got a VR headset, right?

OK. This is where marketing has really gone off the rails.

Marketing swears that VR slashes business travel costs because employees can attend meetings, trainings, and even conferences from anywhere. If you have a global workforce you can see global savings. According to a Global Workplace Analytics study, you would see up to $11,000 per remote worker savings per year. 

This all sounds magical until you read the fine print.

That $11,000 stat? Comes from a 2011 study—years before VR even crashed the enterprise party. It referred to basic telecommuting tools, not immersive headset-wearing wonderlands.

To be fair, newer studies still show remote work saves money, and yes, VR can "technically" fall into that “collaboration tech” bucket.

There are some legit wins. McKinsey and Avatour have both highlighted savings in VR-powered meetings and site tours. And Toyota, via VR Vision Group, reported recouping its VR investment in three years thanks to training and reduced travel costs. So, yes—some receipts do exist.

There's a big difference between using VR for meetings and using VR for Conferences. 

What are your concerns?

VR is great for face-to-face workshops and meetings with 4 to 50 people. But if you’re dreaming of replacing conferences or inviting external guests? Yeah, that's not a great idea, That’s how you end up with an IT audit and a “development opportunity” on your next performance review.

What about virtual conferences? 

Don’t even think about hosting a virtual conference. Empty halls, awkward avatars, bad content, and forced networking? That’s not a conference. That’s a punishment. 

I think I got it. If you are trying to saving money by not traveling. Use traditional video conferencing for small and large meetings where there is only one speaker making a speech. Use VR for medium to large interactive meetings - especially workshops. 

VR for conferences and expos? That is gonna be a hard no. 

Finally, point number seven: Improve Employee Well-being and Engagement!

Ah yes, the wellness train has left the station—carrying a headset and a promise of corporate Zen.

VR is fun! Learning becomes an adventure, not a chore. Employees stay engaged, participate more, and maybe even smile during training. It can also offer guided meditations and virtual nature walks to reduce stress and burnout. And let’s not forget gamification—because if you slap points and badges on it, suddenly HR compliance training becomes tolerable!

Surprisingly, there’s some real research behind the hype.

A 2024 study in BMC Medicine found that VR made clinical emergency training more engaging and enjoyable (which is saying a lot, because emergencies usually aren’t “fun”).

And Frontiers published a review on how immersive VR boosted motivation, enjoyment, and engagement during exercise—suggesting the same effects could carry over into workplace learning.

So yes, the science says it can work. But whether employees are actually strapping in for a virtual forest walk instead of scrolling Slack? That’s a different story.

What does the High Priest of bull crap detection at Rocinante have to say about this? 

Yes, yes, yes, we get it. VR is fun, exciting, and supposedly the future of workplace engagement. But for this use case - that VR will improve employee well-being and engagement - The answer is false. 

Yes, VR is undeniably fun, and learning becomes less of a soul-sucking obligation and more of an actual experience, which should lead to higher engagement and participation.

And companies, until recently, were all about making work fun! And what better way to do that than with VR-powered stress relief, mindfulness sessions, and team-building exercises? The catch? Employees must actually use it.

So what you are saying is after the initial “oohs” and “aahs,” employees treat VR wellness programs like that expensive exercise bike collecting dust in the corner—exciting at first, but completely ignored by week two.

Bingo!

So, after breaking down the key benefits of Enterprise VR, what have we learned?

Enterprise VR is like a promising first date—lots of potential, plenty of excitement, if you ignore a few glaring red flags.

Overall, the promises they made, in general, were true. 

Well, as true as a politician's promise that they will balance the budget. Let's be clear, they WANT to balance the budget, but there are other things that are preventing them from actually executing on that goal. And that is what kinda happened with Enterprise VR.

But the tech is real and the benefits are measurable, 

But sadly, most funding executives just want to say they’re investing in VR without committing to using it. Nothing screams “future-ready company” like forcing employees into a mandatory VR onboarding session… that the executives have never attended.

Or, a far more likely scenario… 

These corporate executives that lead VR programs got a first hand taste of how impossibly hard it is to deploy enterprise VR, how building VR applications feels like coding with oven mitts on during a tornado, and how changing company culture is basically harder than trying to teach your cat to do taxes. And if my name were Daniel Doinkleman—Senior Vice President of Unrealistic Expectations—I’d bet none of these problems were on their executive bingo card when they started on this journey.

What I'm hearing is at its best, VR is a game-changer, giving enterprises new ways to train, collaborate, and prototype without the hassle of real-world consequences. At its worst? It’s an underutilized gadget collecting dust in a forgotten IT closet—right next to that “cutting-edge” corporate wellness program nobody asked for and that internal app they put on a blockchain.

Well friend, it turns out reality IS A BIT MORE complicated. 

The benefits were pretty amazing - and those sales reps and consultants were generally telling the truth. 

But If Enterprise VR is so amazing - why isn’t every employee rocking a headset right now??

Just like Ted said in "Bill and Ted's Excellent Adventure, “Strange things are afoot at the Circle K” which is exactly why we’ve got six more episodes in this series to untangle this glorious corporate train wreck called Enterprise VR and uncover what or who is the villain of our story.

Episode 2 "Strapped-in and Let Down: How Enterprise VR Got Duped by Consumer Tech" will be a deep dive into the mess that was enterprise Quest, while also examining how HTC, Pico, Lenovo, and HP tried (and failed) to build headsets that employees or IT would want.

The headset manufacturers started with a bang… and then teleported us to the nearest pile of unmet expectations. 

So grab your virtual popcorn—it’s time to unpack how the very companies that were supposed to lead the Enterprise VR charge… curled up into a sad little pile of arrogance and excuses.

About the Author
Daniel Eckert finally escaped 29 years of corporate consulting in late 2023, including 8 grueling years in the chaotic trenches of Enterprise VR—where his full-time job was stopping Fortune 500 companies from overhyping vaporware, underfunding moonshots, or serving half-baked headset fantasies. He is best known for taking 4th place in the 2016 International Buzzword competition where he correctly defined, Actionable Remediation Frameworks within Existing Capability Constraints. In other words, Fixing stuff fast with whatever duct tape and interns you already have.

Daniel also co-authored the landmark paper The Effectiveness of Virtual Reality Soft Skills Training in the Enterprise which is cited fifty four percent more often than the financial conspiracy behind overpriced hot dogs at Major League Baseball parks. Daniel now spends his semi-retirement as a Principal at Rocinante Research. Check out some of his other articles on Medium and Linkedin.