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We were using VR since about 10 yrs ago for regular design reviews at General Motors Design, mainly large wall displays and the CAVE for showing interiors (with polarizing goggles for the stereo bit, cheaper for presenting to like 20 people at once)... but immersive VR seems to have stalled about 1997?
I tried a system with (huge) head-mounted goggles and force-feedback gloves at Siggraph...see here:
Seems like all the hardware bits work fine, sense of being in that space was really strong, but the model displayed was a bit basic, looks like its just a case of developing the particular application more, and getting people to want it and to pay for the software/product development..
For immersive games... I want flight and driving simulators... easy to do since there's no walking to simulate...