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It was discontinued after less than a year.

I can see why. Black and red graphics. Terrible.
gaming-virtual-boy-mario-tennis.jpg

If they waited 5 years, blue and green LEDs would have been cheap enough to make the display full color. I still think if it was in color, and sold as an optional peripheral for the N64 it might've been neat.

Yes. And they wouldn't have had to invest in developing games for it if it were a peripheral, so if it didn't take off right away, it wouldn't have been such a big deal.