Was Nintendo right to opt out of the graphics arms race?

[Soundwave]

Pemalite said:

Soundwave said:

GameCube did support DiVX which is basically a MPEG-4 variant, Rogue Squadron III used it for its FMV so did other GameCube games. 

Again. It didn't support it in hardware. That is all done in software.
No point even trying to argue with me on this point with my low-level understanding of the hardware.

What does it matter whether it was software side or dedicated hardware, it was even part of the official GameCube SDK (dev kits). The point is it could be done, if Squaresoft wanted the game on the GameCube it would have been fairly easy to put it onto 2 discs. The biggest space hog on FFX was actually the voice acting (which was awful lol), they used up more space on that than even the video did. That could have also been easily compressed. 

The games of that era were still low res 480i/p games, they didn't use up much data, FMV and uncompressed audio is what would eat up disc space but by 2001 there were tons of compression techniques available. My junk family laptop that had junk specs could run MPEG-4 video files in those days without much fuss.