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I'm curious why it would take more?

Essentially look at your computer's ability to play DVD's. A DVD-ROM and decoding software... that's all you need.

With a Wii you have the DVD-ROM, so just add the decoding software. Perhaps internal memory is lacking to keep the rate of viewing ideal for a human being. Maybe one spends more time buffering and loading than actually viewing? I can't imagine a DVD encoded video stream needs as much memory as say a videogame....