For those that don't remember, the GC does not use a "DVD". Nintendo developed a proprietary format with Panasonic back in around 2000 (when it became obvious that the N64 died due to cart constraints). They own the technology (maybe not all, but at least in part).
$10/unit in licensing fees over the course of a generation can save Ninty $500m+. Its much cheaper for them to develop their own format (or pay another company to dev it for them), than it is to pay licensing fees.
The problem with proprietary drives/discs though, is manufacturing capacity. If the existing BluRay disc makers can't do it - then you need to build your own. Very, very expensive and slow.
I still like carts: the "ace" in the sleeve of carts, is what happens when the tech gets good enough that read rates can get close to slow, internal memory. You don't need anywhere near the same amount of RAM as other consoles (no need to preload/cache data). Imagine plugging in a 4GB game cart... and effectively having 4GB of (R/O) RAM available.
You could make the most insane GTA style game with something like that...
Gesta Non Verba
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