>>332740746
More like it was always stagnating. Oculus exclusives are hit or miss so you can't count on them. HLA was a big thing that took a lot of time to create and we know Valve, can't depend on them or predict them. 
Other studios like Rockstar stopped releasing, because VR just isn't profitable. The initial excitement of VR tricked some into giving it a try and now they're either done until VR becomes profitable or they're working silently on something big that will take years to release, making the current market low with releases. 
Smaller devs with less popular titles just fucked off. The only reason the Pistol Whip devs (who previously were making The Gallery series) are still in VR is because they took the Quest pill and began actually making money instead of breaking even or operating on a loss.