VR is definitely demanding with consoles being more modestly priced compared to what's possible with top-end PC hardware. GT Sport showed just how demanding it is to have what's effectively a dual screen output with a high & stable FPS (generally wanting to be at 90fps or above with no stutters or drops for a good VR experience.)
You can even see it with the way split-screen has been handled in the Gran Turismo series as well... the second perspective being rendered has them reducing the number of cars in a race and/or reducing visual fidelity to make it possible while maintaining a good FPS.
Now, GT7 is cross-gen so PS5 could make the rendering quality more akin to the PS4 when in VR to improve FPS while ideally not needing to create those assets/settings from scratch. Also PSVR2 will includes some great new tech like foveated rendering and eye tracking (as well as the PS5 having its own improvements with guaranteeing an SSD, improved dynamic resolution scaling, improved shader handling, etc.) so it should be able to be more efficient in serving up the level of quality & complexity one might want/expect compared to GT Sport's VR mode. Also GT7 is better than GTS in having cars offer in-car views (I recall some cars in GTS simply didn't have an in-car view at all so VR with that car obviously wouldn't work), but I have seen some cars in GT7 where being in-car and looking back doesn't render the interior like it does with others (hopefully this was a case where the rear view of the car just doesn't let you see what's behind you so they did it as a gameplay concession rather than the interior missing that part & them wanting to hide that fact.) Does that mean we'll be able to have the full set of tracks, cars, number of cars in a race, etc.? Only time will tell.
That all being said, they haven't announced it having VR at all so far. I'd still be happy with a VR mode similar to GTS over not having VR at all (being able to actually look around inside & drive those cars in VR is great even when it's just a head-to-head race or whatever it needs to be.) However, it doesn't seem like it should be impossible to get this expanded to the full experience (which is definitely what people would want) where it can then be considered one of the top games for VR. We just need to see if they want to make the concessions on rendering quality (ideally using foveated rendering to improve the perceivable impact of this), resolution (at least considering the native display resolution of the headset vs what dynamic resolution scaling & foveated rendering might need to do), etc. that might be required to make it happen. Also, it could come after PSVR2 launches after things mature and/or they have a team able to put this all together.
