I don't think it was binned but it has definitely fallen way down in priority. I wouldn't blame them, really. VR is not going to take off like people think it will. At least not for a few more years. Barriers to entry are too high, only a limited number of people are willing to strap a sweat box to their face for hours, and yet more people are nauseated by the whole experience.
When we can have lightweight, untethered, comfortable and affordable HMDs, then there will be a revolution (Google Daydream looks very promising if solid streaming can occur over wifi). For these reasons, I wouldn't give any dev a negative mark for deprioritizing VR. It is a lot of man hours for minimal ROI.