Nintendo president Satoru Iwata made it clear today that the Wii U is not intended to serve as both a gaming system and a home entertainment unit. Here’s a direct quote:
Of course, disc based media is going the way of the dinosaur, anyway.
Wii U does not have DVD or Blu-ray playback capabilities. The reason is that we feel that enough people already have devices that are capable of playing DVDs and Blu-ray, such that it didn’t warrant the cost involved to build that functionality into the console because of patents related to those technologies.
Of course, disc based media is going the way of the dinosaur, anyway.