Luckey appeared on the HTC Vive stage during the Tokyo Game Show 2017 conference and hinted he's working on some very exciting things. He refused to talk about specifics but told the audience to think of him as a VR person, and not just an as Oculus person.
Road to VR speculates Palmer may still be experimenting with the idea of VR having significant consequences:
Back in a May interview Luckey offer a hint into what his next project might entail; he spoke of his interest in the anime Sword Art Online, in which characters become trapped in a VR MMORPG—if they die in the game, they die in real life. Luckey said that he liked the idea of VR having significant consequences.Obviously, he's not trying to make a game where the outcome for losing would be death. But he does want something that hits a "sweet spot" between current games and Sword Art Online.
“This concept of [significant consequences] is part of one of the projects I am working on. But I won’t talk about any details,” he said, and added that it was still “very early” for the project.