In attempting to merge the hardcore and casual audiences with its new console, Nintendo apparently has little interest in appeasing the movie-watching segments of either of those audiences.
Speaking to investors at E3, Satoru Iwata was asked about the Wii U's capabilities as a playback device for Sony's Blu-ray format, as well as standard DVDs. Iwata's answer left little room for interpretation, as he flatly stated that the Wii U would not support either format.
Iwata's reasoning was that Nintendo believes most people already have relevant players for the favored movie format. Licensing the necessary technology patents to support either format would have ultimately proved too costly.
In this regard, Iwata is probably correct. You can buy a DVD player for less than a tank of gas these days, and while Blu-ray players are a bit less common, it seems unlikely Nintendo would leap at the opportunity to pay a direct competitor licensing fees for what will ultimately amount to ancillary technology for the console. If nothing else, this does appear to signal that Nintendo is looking for ways to ensure its console remains cost-friendly to consumers, even if that means taking some potentially sexy bullet points off the box.