There are a lot of issues with this kind of tech, at least for the mass market. For niche uses like driving simulators it can work, and I am sure with enough cash you could set it up.
Even VR has issues, data collected by SteamVR and Oculus shows that most people have very small playspaces, this means that roomscale experiences are much harder to pull off. Right now, the main problem is barriers to adoption, having a headset that you can just put on your head like you turn on your gaming console, that is what is needed. Needing to take 5 minutes to start everything up, or half an hour to setup your tracking cameras is not acceptable for average consumer. Oculus Quest works great in this department and is the way VR will go forward.