Problem with the Switch isn't that it's not powerful enough (it can easily do the Netflix VR app, for example).

The main problem, and the reason this rumor is astonishingly weak to the point of "there's just no way in hell", is in the rest of the pieces needed to make VR work in an acceptable way:

• 720p at this size is absurd for VR. It's lower than the very first prototype of the Rift back in 2012. The screen door effect would be insane. It'll look dreadful, and you'd be hard pressed to be able to read any text. It would, by far, be the worst display in any VR headset to date.

• You need a low persistance display to counter ghosting/smearing. The Switch LCD is not suited for this at all. The display might be great to look at, but in VR terms it's absolute horse shit.

• The 60hz refresh rate of the display is waaaay too low, especially when it's not a LP screen as mentioned over. Minimum is 90hz.

• The motion sensing capabilities of the Switch are potentially not good enough to be able to accurately (sub-millimeter) do VR. Couple this with the very low refresh rate and this would cause intense amounts of distress to the user. It would be the Virtual Boy all over again.

• The Switch main body is very heavy for a head mount.

The console is quite simply not capable of VR of even Google Cardboard quality, even though the raw performance could produce light VR content. There's no way the current version of Switch will get any VR support.