Universal Research Laboratories, which Stern acquired back in the 70s, was dumping a lot of money into R&D before they went bankrupt. It's possible they'd been developing basic VR systems a few years ahead of the curve- Stern was in arcade games until '83, so it's also possible they took some old parts and collaborated with other companies to create a basic VR prototype.
Pinball would have been good, honestly- physical feedback you can overlay with graphics, and each sensor would be tied to a specific location, so you could rely on the physicality of the system to provide feedback to the user's headset.