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NightDragon83 said:

There's no myth... DVD Playback was arguably the biggest selling point for the PS2 for its first year on the market. While it's true that some bargain DVD players could be had around the 2000 holiday season for $100 or less, most brand-name DVD players retailed for $150-$250 and up for most of the year.. our Toshiba DVD player which we had gotten in the spring that year retailed for $249.99 for example after it had just recently gotten a $50 price drop from original $299 MSRP.

The fact that you were getting a top notch DVD player included with your brand new state of the art game console in the fall of 2000 was HUGE for consumers, and movies like The Matrix, Star Wars Episode I, X-Men, How the Grinch Stole Christmas, and re-releases of classics like Terminator 2 and Independence Day helped push PS2 sales even further as the DVD format became mainstream.

The PS2 launch lineup wasn't exactly stellar, with the biggest seller being the yearly installment of Madden NFL. The first batch of true killer apps for the PS2 didn't arrive until the 2nd half of 2001 like GT3 A-Spec, Final Fantasy X, MGS2 and the biggest hit of the year GTA III.  So yes, the PS2 owes a great deal of its early success to DVD.

$150 was still half the price of a PS2. And that kept growing in DVD players favor as the prices dropped quicker than the PS2.

And top notch is definitely a stretch.  The PS2's DVD player at the start of the gen was adequate at best.  It didn't even support progressive scan and some video formats. 

The PS2 had a great launch lineup.  Probably one of the better ones to date.  Here's a list:

U.S. launch: October 26, 2000

There's something there for everyone.  Plus, after the success that was the PS1, gamers knew what to expect from the PS brand.  Great 1st party and 3rd party support was going to be a continuing thing.