Interestingly the converse (game consoles that also play DVDs) were much more successful. Not sure how much that feature was really used, and today it's pretty much moot because online streaming has supplanted physical media for most people.
Not sure how you'd do that now given that the cost of adding Netflix or streaming support is negligible, but Sony definitely made smart moves with their timing and put forth the proposition that "For a little more than a DVD/Bluray player, I can get a PS2/3."
It's interesting how fragmented from an end-user POV the streaming services are -- it's like a 100-way betamax vs VHS fight. I suppose you could argue there's only one "format": the web browser, but that's not true in the home theatre/console/smart tv space.