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Don’t forget DVD playback. Most people by the year 2000 still only had VHS. DVD players were prohibitively expensive at the time so a lot of people were holding out. PS2 had DVD and cost about half the price of dedicated players. I know a lot of homes bought them purely as a movie machine.
I bet if Dreamcast had DVD playback the history of the Dreamcast would’ve been very different.
Calling film watching mindless consumption shows you’re missing the point, perhaps the same way your parents are missing the point of video games. Hell even Tom Cruise is working on a level of craft that no one else in the industry is doing as consistently as him.
Each medium has their strengths and weaknesses. I love video games, I was born in 85, the year of the NES so I lived my life with controller in hand. I do however recognize games still struggle to keep up with story telling in other mediums, mostly because gameplay and story telling are frequently at odds with eachother. And yes of course I know there are games with good story but rarely to they ever stick with me the way multiple films and shows do every year. Even a story like Last of Us was simply told better as a show. The best part of that show was the Frank and Bill episode, something that simply won’t translate back to a game at all. The only game to really stick deep in my soul was What Remains of Edith Finch. So often I’ll pour hundreds of hours into a game with nothing lasting on the other side. It’s why I’ve given up on grindy games all together.
Games also have a barrier for most people on the outside. It’s tough to look at an Xbox controller and not get a little daunted by the buttons, sticks and triggers. Credit to Nintendo for historically finding ways to bring the whole family together for a game night. There’s a reason grandma was playing Wii Bowling.