Yeah, not sure on PS2, but there are a number of ways to do this with XBox too. Just takes a mod chip (maybe ... there's hacks out now that are completely software driven ... you don't even have to open the box, and they're supposed to get at or near the functionality you'd get from a mod chip), once you've got that going, you can swap out the hard drive to something larger, install a number of programs for anything from XBox Media Player (think "Windows Media Player", only open source, and for the XBox), thus allowing movies and music. There's also emulators for every previous game system (up to GameBoy Advance)
You can also throw Linux on it if you want to have a full fledged OS running, and then you've opened up the ability to run any program that will run on Linux.
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