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Nintendo strips every console they make to the bare bones in order to make it the cheapest price as possible.
I mean its almost 2012 and I still haven't been able to watch a DVD on a machine with a Nintendo logo on it.
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They didn't strip anything down on the DVD. It can play DVD's, they simply made it so the software doesn't allow it. If you put homebrew stuff on your Wii it will play DVD's fine. Why did they not give us an option? *shrug* But I'm guessing they were scared of the lasers burning out like the PS2 had problems with.