Nintendo has made the decision to omit DVD or Blu-ray playback capabilities from the Wii U to save on manufacturing costs.
The information came from a Q&A session for investors.
"We feel that enough people already have devices that are capable of playing DVDs and Blu-ray," explained Satoru Iwata, Nintendo president, "in such that it didn't warrant the cost involved to build that functionality into the Wii U console because of the patents related to those technologies."
The report also addressed the disappointing sales of the handheld 3DS, with Iwata admitting they "have not met our expectations."
"What we have analysed up to this point is that the initial move by the early adopters has not translated into broader movement by the broader market in the ways that we had expected."
He was quick to reassure investors that this is expected change as new services become available. "I think that we'll be able to show you that as Nintendo eShop and 3D video services come online, and a number of key software titles become available, we'll be able to regain momentum for this hardware."