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leo-j said:
What I dont get is why the wii doesnt play dvd's? Arent wii games on dvd;s?

 Because of the license fees to play back DVD movies.  Its somewhere around $20 to $30 per a console.  The actual amount is under a non disclosure agreement which as far as I know has yet to be broken but groups have been able to figure out about what the amount is.  This was the reason the xbox could not play DVD's out of the box but required the purchase of a dongle.  Nintendo could offer a player that you could purchase for $29.99 from the online service but how many people would be willing to pay the fee?

This is also why the PS3 should have Blu-ray movie playback removed and make it something that the end users have to purchase from the online store.  Only a small segment of the people who purchase a console use the feature and the Blu-ray movie license fees are $50+ per a console.  Just make playback a $49.99 purchase from the online store and cut it from the price.