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They always miss the point when it comes to media. When transitioning from 2d/16 bits to 3d/32bits it was obvious they needed more space for games. Even in 16 bit era the cartridges were already limiting games because of lack of storage capacity, because of this there already were 16bit CD consoles in the market and was the very reason they wanted a CD add-on for SNES. 

They realized the need to use CD, if they didn`t the Cd add-on wouldn`t even be planned, already on 2d/16 bit, and they sticked with cartridge for 3d/64bit! This solely made they lose FF VII and other 3rd party support! And them comes the 2000`s and DVD is taking off as new format, what Nintendo do? Make a freaking conventional DVD reader or use miniDVDs? No, big DVD is too mainstream for Nintendo, they stick with other strange media choice. And than comes WII, in wich they use DVD but reject to put some movie playing capabilites.

Than with Wii U, wich had at a first moment a really market push as media center with the wholle WII TV thing, uses a proprietary format AGAIN.

Really, what`s up with Nintendo having to be so closed when comes to media? This is all fear of piracy or not wanting to pay royalties fees? Or just a big, huge and japanesy need to be " different"?