The virtuaboy was DOA because it was a 5lb monochrome (red/black) monstrosity that had to sit on a table, with barely 3D wireframe games, no tracking, etc whose original creator never intended what was released to be the final product (besides, as seen, it was 2 decades too early for the tech out there.)
Oculus Rift weighs less than a pound and can be worn on the head. It will be bought by 3D shooter enthusiasts would would otherwise buy multiple video cards/monitors just for gaming. I assume it will have a microphone.
I really fail to see what the two have in common. If I were into 3D shooters, I would be saving up for such a system.
This is like claiming in January 2007 the iPhone will bust because of the Apple Newton.