That doesn't mean it can't happen in the future. The Virtual Boy had many failings. It was expensive, caused severe eyestrain, and had fairly poor graphics. It's not even close to the worlds that the Rift and it's ilk can immerse you in, so you cannot simply write off all vr from that.
That being said, This generation doesn't leave much room for VR from Nintendo. I suspect Nintendo is taking a wait-and-see approach on the PC and PS4 VR reception, but they may jump into the game if it's encouraging. But I strongly suspect they would rather go with a mixed-reality approach like Microsoft's Hololens - which is an entirely different ballpark. VR shuts you outside of the real world which takes some getting used to, but MR can add fantasy to the real world, something that would be right up Nintendo's alley. You can literally create the worlds from fiction with MR. Have you ever watch Yu-Gi-Oh? Baka to the test? Robotics;Notes? They all hint at a world where fact and fiction intermingle, and if you pretend that everyone is wearing Hololenses then they (aside from a few exceptions) literally conform to the physics of our reality.