It's a niche hobby as compared to gaming at large. It's the cherry on top that most people either don't require, don't understand or are just traditional players (like me).
I'm not saying its good or bad, but it needs to be essential to your gaming experience, and until it is, it won't dominate anything.
VR market penetration doesn't rely on its quality or fun-factor anymore, it needs to convince people that it's something that they can't game without...
I think immersion is a stupid variable that has no real meaning, however, I would imagine that a 3D "world" should be more immersive than a 2D world. just by its nature.
Maybe the OP meant that Octopath is more captivating in its design and structure, which I would easily believe.
I think it was the 2D -> 3D trend that was occurring that put developers at a loss. Things like Tactics Ogre 64 could make the transition sort of painlessly, but you wouldn't really call that game a 3D RPG anyway...
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