I think it depends on whether they can find a useful mass market niche for it. The original Apple Watch was envisioned as a multipurpose wrist computer phone but after a few years turned out to be more marketable as a fitness tracker with pretty watch faces and available bonus features that aren’t widely used.

They’ve now discovered that $3500 device for a solitary person to watch 3D Disney movies isn’t it.

But personally I would bet they give it a runway to try and figure out how to make VR happen.