I'm guessing no one here's ever worked in a prison.
This is not the 1950s. People who work in the penal system are fully aware that rehabilitation is virtually impossible. The point of prisons is CONTAINMENT first, punishment second.
Prison sucks. A lot. There's the lack of individual expression, the lack of drugs, the occasionally getting raped, and the beatings from both fellow inmates and guards. On top of all that, there's the boredom. If you have nothing to do, pretty soon you start inventing mental stimulation. As anyone who's gone stir-crazy knows, the shenanigans can get out of hand. Especially when one of the suggestions for what to do to alleviate this boredom include beating fellow inmates and participating in another obnoxious, myopic activities.
Television and other forms of entertainment, like video games should be in prisons so that the inmates have something to do besides prey on each other and get preyed upon. If they're busy thinking about their performance in the next FIFA 09 tournament, they're not thinking about bring tort after frivolous tort to gum up their municipality's legal system, or asserting dominance over one another with puerile shows of force.
Now, I don't think that the most cutting edge systems are necessary to keep the inmates happy, but I do very strongly feel that there should be video games, as well as other forms of entertainment available to the prisoners so that they don't associate violence and rape with 'fun.'
More on topic, though, I find it amusing in a sick, sad way that this problem could have been solved with a 15-minute phone call to Sony Europe's customer service, but hey, there's no IQ test to work in the penal system.