By reading between House's sentences, one can deduce he's unhappy with how slowly Sony's rivals have been W.R.T. expansion.

Sony's strategy with the PSVR is to push it as a cheaper yet still adequate alternative to expensive PCVR, but with PCVR doing badly, they're doing badly by knock-on effect (since there simply aren't enough people who say "I want a Vive but can't afford it, so I'll get this Pro VR bundle instead").

Moreover, the lukewarm demand is affecting component prices, or, rather, not affecting them, in that they remain higher than the average cost/demand curve for electronic components.

And another issue, the relatively low market penetration makes small-to-mid tier developers not gamble on software, causing most VR games (not including VR remasters) to be on the simpler end, experience-wise. This in turn decreases the value proposition of acquiring the device.