For example Fortnite's done this twice with EDM DJ Marshmello and rapper Travis Scott, and recently experimental electronic music duo 100 Gecs held a music festival in Minecraft called "Square Garden" which also doubled as a charity fundraiser (the members of the group also stated that another reason for the virtual concert is because they had plans for a live concert tour but of course Covid-19 put a stop to that), featuring acts such as Kero Kero Benito, Tommy Cash, Parry Grip, Charli XCX, and other underground electronic acts kinda like the organizers 100 Gecs such as Alice Gas and 99Jakes. Even popular music critic Anthony Fantano help bring attention to the festival on his social media.
Now of course I do believe there have been examples of virtual concerts in the past through things like Second Life and similar "social MMOs" but now we're seeing this happen in other types of games, and I'd go so far as to argue with these games you get much bigger audiences than one would see in something such as Second Life just due to the sheer popularity of them.