VR as it currently stands lacks two things (which were what made motion gaming possible on the Wii as well).
A Killer App and Price.
Nintendo has everything it needs, the Killer App is clearly Mario Kart, Nintendo doesn't even need to create exclusively VR games, just put some games like Mario Kart and Metroid Prime to work and it will be a success.
And price, people are not interested in paying the price of a console for an accessory, the VR Kit has to cost a maximum of US$150.00 or if possible even less. I don't see how Nintendo would be able to do this while meeting the demands of the hardcore VR audience, no, they won't make their own Quest, at least not at the moment. One option would be to stick the Switch 2 Tablet in our faces, I know most people here will find that disgusting, but the reality is that most people who have experienced VR in the world have done so through derivatives of the Google Cardboard project.
It's not ideal, it's not the prettiest solution, nor the most comfortable, but it works.
Nintendo won't focus on turning this into a major selling point for the console (unless it's a much bigger success than we imagine), but it would make a lot of money selling overpriced plastic so that your little cousin can have the first VR experience of his life.