Frequently Asked Questions - The Internet FAQ Site

Business decision made by the Nintendo people. They weren't going for that market. Yes, the XBox plays DVDs.

Also there is a $20 fee for any device that plays DVD that needs to be paid to the group that holds the copy rights for DVD. Nintendo was trying to keep the price down on the units so they didn’t add it. Also the original Xbox only played DVDs if you bought the DVD attachment that comes with a remote. The Xbox 360 plays DVDs with no additional devices.

The nintendo Wii does not play DVD's because Nintendo decided not to go down that road and that way they can sell there system for less. I heard a rumor the Wii was coming out with an upgraded system that would have DVD capabilities. The xbox 360 on the other hand has the ability to play DVD's and if you want to spend the extra money you can purchase the external HD DVD player which hooks into the xbox and plays HD DVD's.