How can I tell my parents that the oculus go is ok, but not good for gaming.

Maybe stop acting like a spoiled brat.

On sale, even the version with less memory costs about $200 (see: https://www.space.com/oculus-go-vr-headset-black-friday-walmart-deal.html). Average hourly wage in the US (I'm assuming you're in the US, but the principle is similar) is $27.16 (see: https://www.cheatsheet.com/money-career/how-much-does-the-average-american-get-paid-per-hour.html/).

After taxes, it takes the average American over a full day of work to make enough to afford one.

If it's truly horrible and you hate hate hate it, you'd better offer to return it yourself, buy what you want, and make up the overage with your own money. And if there's any change leftover, give it to your folks. For their troubles, if nothing else.

Prevent this from happening again by asking for cash next time. And recognize that this represents a major change in your relationship with your parents. For from now on, gift giving has jumped tracks and become a commercial transaction.

For those of us at that stage with our parents, we usually tell them we don't want or need anything. Because it's kind of a nice thing to do, to tell them they don't need to write out a check.

Yes but I can’t exactly return it because my parents think it’s just fine, and I don’t hate it, it’s just fun until you realize that the selection of games is extremely limited.

Then smile and say thank you - you love it.

Be appreciative for the thought and money they spent on you.

That is how a non-spoiled brat would handle it. Gracefully and with real appreciation. You do appreciate that they thought of you and bought you an expensive gift? Right? If not, then you are a spoiled brat.

Give it a couple of months or so, then see what you can sell or trade it for. Ask your parents if they would mind if you made a deal to upgrade the game. Be prepared to kick in, if needed.

Next time, ask for a gift certificate.