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Two key points:

And only the highest-resolution displays, the so-called 1080p HDTVs, for progressive scan, can show the images at their best. As a result, the potential customer base is limited. With a lower-resolution 720p set, “you are not as likely to see a dramatic a difference” between standard and high-definition DVDs
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In addition, DVD players that can convert images to near high-definition quality can be found for under $100, hundreds less than a true high-definition DVD player, further reducing the urgency to upgrade to one of the new formats.



We don't provide the 'easy to program for' console that they [developers] want, because 'easy to program for' means that anybody will be able to take advantage of pretty much what the hardware can do, so the question is what do you do for the rest of the nine and half years? It's a learning process. - SCEI president Kaz Hirai

It's a virus where you buy it and you play it with your friends and they're like, "Oh my God that's so cool, I'm gonna go buy it." So you stop playing it after two months, but they buy it and they stop playing it after two months but they've showed it to someone else who then go out and buy it and so on. Everyone I know bought one and nobody turns it on. - Epic Games president Mike Capps

We have a real culture of thrift. The goal that I had in bringing a lot of the packaged goods folks into Activision about 10 years ago was to take all the fun out of making video games. - Activision CEO Bobby Kotick