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What Sony was hyping the PS2 to be and what the PS2 ended up were two very different systems ...

Before the PS2 was released there was a lot of talk from Sony about how the PS2 would allow people to add a keyboard and connect the PS2 to the internet so people could browse the internet and check their email from the comfort of their couch; and the PS2 even had a printer port and Sony (tried to) encourage companies like Corel to produce productivity software because Sony believed it would be easier to sell PS2 systems if people believed they were PCs.

We know now that Internet television was a short lived experiment, and most of the use of the PS2 as a PC never happened, but Microsoft did see a threat from Sony and responded with the XBox.