AMD has announced the acquisition of Nitero, a company that made a "phased-array beamforming millimeter wave" wireless chip for VR/AR headsets:
Nitero has designed a phased-array beamforming millimeter wave chip to address the challenges facing wireless VR and AR. Using high-performance 60 GHz wireless, this technology has the potential to enable multi-gigabit transmit performance with low latency in room-scale VR environments. The beamforming characteristics solve the requirement for line-of-sight associated with traditional high-frequency mm-wave systems, potentially eliminating wired VR headsets and enabling users to become more easily immersed in virtual and augmented worlds.
I'll say no thanks to a headset with cables connected to it. Those are for the early adopters.
Oxygen attenuates 60 GHz signals, a property that is unique to the 60 GHz spectrum.
-- http://www.bridgewave.com/products/tech_overview.cfm [bridgewave.com]
Make the VR game be some sort of Mars thing. Run the game in a room with cold nitrogen and carbon dioxide. Players wear rebreathers to survive. High-end systems can even be low pressure, with players wearing pressure suits.
Other options: Moon (just vacuum), World War I (nitrogen and chlorine), and bad coal mines (methane, hydrogen sulphide, hydrogen).