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NATO said:
A month after the PS2 launched, the Sony 530D DVD player was being sold at $320, $20 more than a PS2, and all the 530D could do was play DVD's.

Yes, you could get DVD players for cheaper, but they were, at the time, shitty brands of the day.
A lot of the good brand DVD players still hovered around the $300+ mark, which made the functionality in the PS2 a big selling point for a LOT of people.

You can try to downplay it all you want, DVD functionality was a major draw when the PS2 launched

This, plus just look at teh PS3.

Sony fully knew the PS2 had extra help due to the DVD. They hoped for the same success with the Blu Ray.