Virtual reality is the hottest new trend in the video game industry, and big names like Oculus, Valve, and Sony all jumping on board. Nintendo has not yet revealed any plans to join in on the excitement (although they are keeping an eye on how it is evolving), as they feel the current state of virtual reality is not fun. Nintendo of America President says that one of the big problems is that virtual reality is not yet a social experience, and it needs to be before Nintendo is on board. Shigeru Miyamoto has expanded on these comments, stating that virtual reality in its current state doesn't fit Nintendo's philosophy.
"The current types of virtual reality aren't really a good fit for Nintendo's philosophy of trying to create entertainment that people can play together in the living room. We're constantly looking at different technology and experimenting with different elements of it, but we're not feeling virtual reality is currently in a place where it's ready to be released - as a product that fits with our philosophy of fitting in the living room." — Shigeru Miyamoto
Nintendo games often heavily feature a local multiplayer option, so the living room experience is very important to what they do. Nintendo likes to create fun experiences that people can play together, and virtual reality is not yet at that point.
Source: Yahoo Tech