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Sky Render said:
DVD was an emerging format in 1997, not 2001. By 2001 it had transitioned out of emerging and was transitioning into dominance over the long-time video format overlord, VHS. In that light, the PS2 having DVD playback support was an excellent move.

well according to a few things i've read, DVD did not overtake VHS until well after 2001. VHS had more marketshare for a fair time after the ps2 came out.

http://www.afterdawn.com/news/archive/4197.cfm (rentals DVD vs VHS)

Nonetheless, i think DVD integration was something that really pushed the PS2 forward. A system that exclusively plays video games seems like a smaller demographic, but the Wii could very well prove that wrong but i definately have my doubts.



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