This is what happens when you have one dominant system. The game library gets so saturated that the ceiling for game sales is lowered... basically, too much competition in one console ecosystem will hamper the potential for all games in that ecosystem.

yeah... that isn't true.  If you wanted to make a case for a very small fraction of people, sure, but most?  Nope!

Everyone I knew at the time didn't know it and when I found out it did I thought it was pretty cool. So yeah, I will go with it because the majority of the younger audience had a very high chance of not knowing. 

how would you know they didn't know if you yourself didn't know about it to ask them?   Again, your anecdotal evidence is just that, anecdotal.  I could share the fact that every young or old person I knew that had a ps2 knew it was also a dvd player, but would it mean anything?  probably not.  However, looking at the historical trends and the way dvd sales flew off the charts when the ps2 came out, it is hard to deny that the VAST majority of people that bought a ps2 knew it was a dvd player.  

choice, higher range of high quality games to choose from

Just a side note but aren't PS2 sales actually over 150 million? Anyway, I wouldn't call 3-6 million sellers a flop. I believe the best selling game on PS2 was GTA San Andreas with like 25 million copies sold on PS2 alone.

PIRAAAAAAAAAAACYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYYY

I found out by accident and asked them afterwards. You're right about it being anecdotal though, not much I can say about that. I just have a hard time believing the huge software sales for PS2 has anything to do with it also being a DVD player. Seems like it should have been an opposite reaction. 

I said dvd sales, as in movie sales...

I wasn't talking about that. It was a reference to the first thing I said.