But your comment was about horsepower, not decoders. As for the DS running FMVs, it must have some kind of small codec because of all the FMVs we've been seeing in DS games.

Which means some of the FMVs in Blue Dragon could be on the DS, just in 192p 4:3 instead of 720p 16:9, which should hopefully get this thred back on topic.

 OK than let me put it this way my T-mobile MDA can play back MPEG4(H264) at the screens resolution without a hitch. So yeah the DS can playback MPEG4 no problem wether it is able to decode MPEG4 physically is another question but the power of the DS is not the limiting factor.

Even though it has been published by Microsoft Game Studios, it does not imply that Microsoft own the rights/licenses.

If you take a look at the Gears OF War copyright info it says

"Gears of War, the Crimson Omen, Unreal, and the Epic Games logo are either registered trademarks or trademarks of Epic Games, Inc., in the United States and/or other countries."

Even most of Rare's franchises such as Conker, Banjo etc.. went to Microsoft after they purchased Rare. Another reason why Nintendo is struggling to bring Goldeneye to the Virtual Console.

Blue Dragons Copyright info is not very clear for now,