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DVD's has the same standardised resolutions, aspect ratio etc and video / audio codecs. A video file is not the same as thousands of completely different game asset files (script files, model files, texture files, audio files), which video games needs, and the console has to support this.

Also, by not having several producers around the world, of questionable quality of the hardware, who knows how to bypass the DRM and other disc protected things (read: a box that can play the game), they can combat piracy too, at least for a while (and that's the most important thing about that).



Yep.