Does the Wii prove that the HD razor/blade model is flawed?

[Squilliam]

MaxwellGT2000 said:

Yeah since a smaller disc even GC size but still a subset of Blu-ray could still hold more than a DL DVD and cut a few middlemen out.  Wasn't the license issue the reason why DVD playback not allowed in the Wii?  Cause Nintendo talked about a Wii with a DVD player built in could come later prior to launch on IGNs site.

Yep pretty much. Why pay all that money, up to $500M over 100M consoles for something which people already have like 20 different players for? If you can't play back Blu Ray you can save that $10 right off the bat. Thats either extra profit or you could spend it to make your console faster. The cheaper you make your console also the more that fee will hurt you relative to the cost of the console itself.