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The reaction from the new device was mixed at its first showing. On one hand there was the new 3-D graphics on the other it had only a monochrome format which was a major weakness in the GameBoy as well.

Released in 1995 the Virtual Boy was the company's first system to flop from the beginning in both of their major markets in Japan and the US. It wasn't taken too lightly by players who had to look into a headset, which if not propped at a propper height or angle could cause neck and back discomfort and/or headaches. Nintendo was attemping to provide a cheap, virtual reality system that avoided liability from people getting impared vision.

In an attempt to save the quickly dieing system Nintendo tried to get prospective developers for their future 64-Bit sustem to sign contracts to make games for the Virtual Boy. While some signed contracts, many others would not and the Virtual Boy game line up froze with less than 20 games in the US. Sales for the system were flat and massive discounting began dropping the price of the system way more than half of its original cost.