In an article in the latest issue of Next-Generation Magazine, NOA Chairman Howard Lincoln revealed that Nintendo's next-generation console would NOT play DVD movies or audio CDs straight out of the box. "You will not be able to play audio CDs on Nintendo's machine, and you will not be able to play movies. That's something that's already established," said Lincoln.

While this may seem like bad news for Nintendo at first, it may be for the best. If Sony releases it's console with the ability to play DVD movies at a price point of around $300 dollars, and Nintendo releases their gaming machine for 100-200 dollars Then low-budget consumers and those who already own DVD players may find Nintendo's system a bit more attractive.

Those really looking forward to DVD playback capabilities in the Dolphin should not give up yet. While Nintendo is releasing it's base unit without DVD and CD playback, business partner Matsushita all-in-one system with DVD/CD playback and the ability to play Dolphin games at a higher price.