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The Gamecube's disc format was a variation on a failed DVD specification that was produced by Panasonic ... It is quite possible that Nintendo could create a variation of HD-DVD or Blu-Ray in order to get the high capacity of those formats and the security of a proprietary format.

Whether the system would play movies of either format is a much different question ... Nintendo would have to see the added value (in terms of increased sales) in order to justify the licencing cost of adding the format; the primary reason why the Wii didn't include DVD playback was that practically everyone who cares about DVD playback already own a DVD player so there really was no added value for Nintendo to pay the licencing costs.