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I think the biggest reasons it found some success with the general market would be Sony's success on the PS2 and when it released it did have the niche of being a expansive multi-media device.

I would agree with zuvuyeay that being easy to hack and emulation would only be a draw for a specific group, albeit probably a proportionately bigger one than most systems, but it is hard to say that it would have significantly hurt sales if this were not an option. Depends on the overlap between those that bought and hacked the console and then, of those, the ones that would have bought it for different reasons.