I don't really believe that Sony would make more money off of Blu-Ray than they did off of the PS2 ...
Although there are a lot more movies sold than games, Sony makes a lot more off of the licencing fee from a single game than they will off of a single movie; and they will end up sharing the fees gained from movie sales with several stakeholders in the format (whereas they gain all of the money from the sale of a game).
I (personally) don't think anyone thought of this as an either-or scenerio though ... It is likely that Sony believed that they could leverage their market dominance in videogames to push the new Blu-Ray format, and when these devices are established their brand will be very strong and would move more HDTVs and receivers. The end result has been very different than this though, Blu-Ray has killed all chances the PS3 has at becomming the dominant platform which (in turn) which may have a negative impact on the Sony brand as a whole.
