PSVR2 is absolutely the beginning of Gen 2 VR. It will blow away the current PSVR and all current PC VR Headsets. I'm willing to bet anything on that.
First let's think about the PSVR 2 headset itself. An increase of field of view is going to be a huge game changer for immersion. Now, how big are they going? A measley 120-130 degrees like the Valve Index? Nah! Sony needs to push this FOV to at least 140 and above to be a game changer. I have the Valve Index and a Pimax 8kx, and I will tell you we NEED more FOV. Especially vertically. If we can hit 140 horizontal by 130 vertical, it will be a revolution in VR.
The resolution will be astounding I'm sure. We're looking at likely 4k per eye, at a minimum what the HP Reverb G2 has (which I also have) but at the much wider FOV. This resolution increase is going to be beautiful. But NOT just because of the screen itself, but the main reason is the PS5 hardware. The PS5 hardware is pretty fucking powerful for VR. It's about a RTX 2070 Super in power, but the main thing about it is that this is now the BASELINE for developers to build for. On PC, a game like Alyx has to be built to run on something like a GTX 1060, and other games have far lower requirements. I think when you see what first party developers like Insomniac can do building around that high spec of the PS5, they will create some amazing stuff.
The games will be able to run at high resolution. If you see something highly super sampled in VR, it can look amazing. The reason why alot of PSVR games don't always look amazing is because they simply have to lower the resolution so much just to get it to run. So like you said, PSVR is running about PS3 level graphics in VR at times. PS5 will likely enable close to PS5 level graphics running at full resolution, especially if they add EYE TRACKING. Eye tracking will enable foveated rendering. This combined with DLSS like algorithm would make for an amazing increase in performance and resolution.
Even on the Quest 2, if you go into Side Quest, you can increase the rendered resolution of the Quest 2 to the native resolution of the screen. Look at the Oculus Home Environment at that resolution. It looks absolutely incredible. Crystal clear and beautiful. And that's Quest 2 level graphics, which is really hovering around PS2 level (I saw someone above argue that Quest 2 does PS4 graphics?? Absolutely not) Even with these graphics, the resolution makes it look amazing. The Quest 2 simply can't run those visuals at a high enough frame rate, but the PS5 can.
If we could get God of War, The Last of Us 2, Ghosts of Tsushima level graphics at high res and wide FOV in VR, people will be BLOWN THE FUCK AWAY.
I'm not even mentioning the new controller, which is probably going to be fucking amazing with the dual sense haptics.
A question that remains is tracking, which will almost surely be inside out tracking for ease of use, and hopefully it's great. The single cable is a great start, but hopefully they are working on a Wireless adapter for PSVR 2. That would be yet another game changer.
One last thing is to think about the big VR software that is coming. Rockstar is hiring for a AAA Open World VR game, Firesprite is working on a AAA VR game, Blood and Truth devs are working on a AAA VR game, Insomniac is probably cooking up something big for VR, Astro Bot 2 is almost a given, Farpoint devs are working a AAA VR game, Resident Evil 8 will likely get VR down the line. Imagine someone like Naughty Dog does a project?
The Future is so bright for VR. While Oculus is doing decent things appealing to the mass market, the Quest is held back by a mobile chipset and caters to the lowest denominator. Because of PSVR 2, AAA VR is back. Like you said, PSVR 2 will show what the medium is truly capable of.
