During a random Google search for “sega virtual boy” to see what might come up, I actually found something interesting. Nintendo Life reported on some info from former Sega of America boss Tom Kalinske and their initial talks with Reflection Technologies, the company who went on to supply VR technology to Nintendo for their Virtual Boy system:
Sega was, at the time, seriously considering entering the Virtual Reality sector and even got as far as producing a headset for the Mega Drive / Genesis which was shown off at trade shows of the period, but sadly never saw a commercial release:
“It was pretty cool. You could put it on and literally you were in a virtual world, and it moved as you moved your head.
One of the problems was almost everybody got sick. It caused severe motion sickness. Other people got severe headaches.”
I’m getting a headache just thinking about the headaches. Like Kalinske said, they were right in turning it down but he couldn’t dodge the Sega Saturn bullet he was effectively forced to take. But I digress.