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Yes and No.
In theory, this sounds great. To have the best qualities of other games mashed into one game is a great way to make a great game. The problem, though, isn't the game. It's the fact that it's a VRMMO. When VR headsets first came out, VRMMOs were very popular because people wanted to immerse themselves into another world. This feeling faded quite rapidly over time.
Let's take a different route, though. The one thing that makes games more popular than other games is advertisement. VR games have little to no advertisement. If a VRMMO game was made with everything you listed AND had a ton of advertisement, it would work. There is one issue. A lot of advertising is through Twitch and streamers, and most streamers would rather sit in front of desk instead of stand for a VR game.
its not fading, its actually still VERY much there and still a WANTED thing in the vr community, but..companies are doing it all wrong, there not listening to how a vr mmo should be, listening to community feed back, and actually doing stuff to the game.
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this company focused on money, and polishing the "new player experience" 3 DIFFERENT TIMES???
we want a good VRMMO that isn't basic, or run down, its because most of the "mmovr" games are ALL on quest, and quest is a joke of a headset, sure its powerful, but it has its limits, where as PCVR can be pushed further and further, where VRMMO SHOULD BE MADE, and NOT focused on quest, sure you can make quest viable but once you get to a point thats it. there's nothing more you can do without OVER LOADING the small thing.
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If they actually took time and made content, updated places, game mechanics and features instead of REMAKING the spawn multiple times, they might have done better.
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oh also they are TERRIBLE, and I mean like, parent ignoring their child terrible at communication. They refuse to listen to the community, take feed back, or even respond to anything the community gives to them. its a really bad practice for a developer, and someone trying to push out their game lmao.
Zenith had decent(ish) funding and launched with lots of hype and good sales #'s. However, it went downhill rapidly from there. It has been discussed ad nauseam here why it failed. So no point in going over all that again.
I do think it had a shot at being successful. More so than orbus or ilysia. Unfortunately, I think its failure likely serves as a warning to other dev studios no to bother with a VRMMO.
The best hope for a future VRMMO is for the userbase to grow and for standalone hardware to become much more capable. However, even META is cutting VR funding and closing some gaming studios so I wouldn't get your hopes up.
I apologize again if I sound like a doomer, but I don't see much to get excited about for VRMMO's.
What the VR MMO industry needs is a "PHANTASY STAR ONLINE"
-An online RPG based around a central, social hub, and with tons of instanced areas/dungeons of increasing difficulty and better loot.
-Extreme ease in joining other players and teams from said hub via a simple menu, allowing simple and seamless team/dungeon making on the go, and allowing for players to hop from farming mobs to chatting in the hub in just a few clicks.
-A good but SIMPLE combat system, that works in VR and that is paired with a half decent collision system, focus less on flashiness and more in mastering the basics.
-Loot that is actually exciting to farm for and eventually obtain, rare weapons worth of their name, with cool abilities and functionalities that can only be accessed thru them, thus making a good rare weapon something to treasure and use for a long time, or even the centerpiece of your entire gameplay.
-Good and catchy music that makes the grind more fun and even enhances it.
If you need examples, might i present the entire Ragnarok Online soundtrack?
The technology currently available both for developers and the average VR player is limited, stop trying to make a game that is 15 years ahead of the curve.
Sure, we all dream of the day we can have a FFXIV level game in full immersive VR, but that day is not today.
Make a smaller game, with simple yet addicting gameplay, based around loot farming and character building like the Ultimas and Diablos and Phantasy Stars of the bygone era.
Stop wasting your time in pointless empty open worlds with 999999 features that 80% the playerbase will never play enough to touch.
We are at the infancy of VR MMO, let us act like it.