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I think video games already are this for a lot of people. I realized this while attempting to clear all the question marks in Skellige in Witcher 3, and I watch the games my nephews play and there is just so much grinding for loot. It really has in a lot of ways replaced having a part time job for them.

Why does it matter that it’s a headset? People already do this on their phones.

Well that is an interesting take. I would not say it is implausible.

If you could live in a Matrix-style creche it kinda makes sense to do it: you're physically safe, you're already in an intensive care unit if you ever get sick, and you can explore an unbounded world of experience...

I could see a future when the bulk of humanity lives in "the Matrix" voluntarily, eh?