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view the rest of the comments
You're misreading how the graph is laid out. The y axis is the combined total revenue of the entire video game market, with each new piece of the market being added on top of the older ones over time (although arguably arcades are the oldest form and should be below consoles). VR is the newest niche, and so it goes on top of everything else as it adds its revenue to the gross total of the entire market, despite only being a tiny piece of that sum.
In your layout, consoles/arcade would be at the top with everything else underneath them.
Even that don't make no sense, boss. If that were the case not only should consoles and arcades be swapped, as you say, but also the VR line should be slipped in between handhelds and mobile. Dactyl Nightmare came out in 1991 and certainly wasn't even the first VR experience, but it was the first commercialized one I can think of — and played myself, believe it or not. I can't imagine VR as a whole made anything other than chump change until 2018+, but it was indeed there and chugging along quietly.
The graph specifically calls out the Oculus Rift as the start of what it considers the VR segment.
I would consider things like the Virtual Boy as VR to some extent as well, but I do see the logic as to why they only started the line with the Oculus. Before that it probably wouldn't even show up as the money there was a drop in the bucket of a tenth of a percent of anything else, but it's also widely considered that the Oculus and the Vive were the first really viable commercial VR headsets that started the VR game niche/genre. Before that, VR could probably be considered as niche as eye and head tracking hardware for sim games, and I don't think that I've ever heard somebody mention those when talking about money in the games industry. Or even mentioned them in general outside of conversations like this. I don't think most people even know that that kind of stuff even exists.