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"?

They hate sharing money.

For the N64 Nintendo was actually developing the 64DD which was meant to be released a year or two after the N64, with carts being only a stopgap solution. For some reason they couldn't get the thing ready in time, so the N64 was stuck with carts. The 64DD used its own magneto-optical media developed by Nintendo partly due to fear of piracy and partly because they didn't have a partner who could offer them CD technology, as the deals with Sony and Philips went sour.
For the Gamecube it was because of the design they made for the console. I don't know why they are so focused on small.
The Wii and Wii U don't have DVD playback purely because Nintendo doesn't want to pay DVD and Blu-ray royalties. At this point, it's not a big deal.

I dont see the issue with the Nintendo Wii and WiiU media formats. :p They use DVD and something very close to blue-ray respectively, its fine, Nintendo has bigger problems to worry about.

Most people already had DVD and Blu-ray players ..so they decided to support Netflix.  

https://www.youtube.com/watch?v=rXQcaJQXf78

Wow. I knew some of that, but not all.

The Wii did fine without playing DVDs. If you want a DVD player, you can by one for $5 at a garage sale. All it needed was streaming software like Netflix. The Wii U does even better and the NX will be better still. No need for antiquated physical media to make the console more expensive than it needs to be.

Pushing an all-in-one media device is a stupid move from nintendo. They should prioritize making a gaming device first and then have the small features (like netflix) on the side.

Making the NX a bluray/dvd player isn't going to help them at all in my opinion.

I believe it was because of piracy. Here in Brazil PS2 dominated console-wise, but i didn't knew 1 friend who didn't used pirated games. It was really easy and some of my friends had over 500 (i'm serious) games, all bought for $2 each. It was crazy.

Maybe it payed off because Brazillians today really like the playstation brand, but i can see why that scared Nintendo. 

The Wii was actually supposed to have a USB dongle that was going to allow DVD playback. Nintendo announced it, but never released it, I think by then they figured everyone had a DVD player.