Nintendo, ever the master of shooting itself in the foot, has quite possibly found the worst time to unveil some of their future plans for the Wii. Originally, way back in 2005 Nintendo stated that the Wii would have DVD playback, and the fans rejoiced - this was a much-lauded departure from Nintendo’s strategy with the Gamecube of focusing ONLY on gaming. After a long silence, Nintendo confirmed earlier this year that the Wii would NOT in fact have DVD playback. The reason given was that this would help to lower the cost of the console for consumers and ultimately wouldn’t make much of a difference, given that DVD player penetration is already quite high, worldwide.

Now comes the curious news… just today (barely a week before launch) Sonic Solutions announced that they had been tapped by Nintendo to create a DVD-playback solution for the Wii. The announcement stated that the Sonic Solutions will be working on a software-based playback method that will be released with an updated Wii console sometime in 2007. First of all, there’s the question of firmware updating - given that Nintendo has engineered a relatively flexible, updatable OS for the Wii, why hasn’t Nintendo thought about figuring out a way to implement this software on the current Wii console via a software update? Can the current Wii not handle this amount of processing? And second, REALLY REALLY bad timing Nintendo… are you trying to convince anyone that might be wavering on whether or not to pick up a Wii to wait until 2007? The current news really doesn’t make any sense at all - we can only hope that Nintendo will clarify all this and hopefully tell us that our circa 2006 Wiis will eventually be DVD-compatible.

The full announcement can be found after the jump.

Nintendo Selects Sonic to Enable DVD Functionality in Future Version of Wii Console
Sonic CinePlayer CE DVD Navigator Helps Deliver Ultimate Movie Viewing to New-Generation Gaming Console

NOVATO, California (November 8, 2006) - Sonic Solutions® (NASDAQ: SNIC), the leader in digital media software, today announced that Nintendo, the worldwide innovator in the creation of interactive entertainment, has chosen Sonic® CinePlayer® CE DVD Navigator to bring high-quality DVD movie viewing to a future version of the company’s Wii™ gaming console. Nintendo plans to release this version of Wii in the latter half of 2007.

Based on the same technology trusted by Hollywood studios, CinePlayer CE DVD Navigator is a robust, software-based DVD playback engine that delivers broad playback compatibility on a variety of platforms. The proven technology offers exceptional picture quality and supports all standard video and audio formats offered in the DVD specification, as well as advanced functions such as anamorphic widescreen video, motion menus, and multiple video angles. “To be involved in Nintendo’s ground-breaking gaming console is extremely gratifying and a testament to the efficiency, flexibility and dependability of Sonic’s technology,” said Jim Taylor, senior vice president and general manager of Sonic’s Advanced Technology Group. “Game consoles represent a fresh market and platform where we can introduce a new audience of potentially millions to the quality of our brand and the power of our digital media applications.”

According to a recent report by new media research firm Centris (http://www.centris.com/index.htm), DVD playback device penetration continues to grow. The total number of DVD playback-capable households grew to 91 million in April 2006, which represents an 8% increase over the previous year. Adding to this figure was an increase in DVD-enabled game units which grew 11% year over year to approximately 45 million.

Created by Sonic’s Advanced Technology Group, CinePlayer CE DVD Navigator is part of the company’s growing portfolio of technologies that are being licensed to enable CD and DVD playback, as well as DVD recording and authoring. Sonic’s technologies are licensed by leading technology companies such as Adobe, Microsoft, and Scientific Atlanta and used to enable digital media experiences in a wide variety of markets including consumer electronics, PCs, kiosks, automotive entertainment systems, and music download services. In addition to standard-DVD, Sonic recently introduced comprehensive support for emerging high-definition formats, Blu-Ray Disc (BD) and HD DVD.

For more information on Sonic’s technologies for application developers, visit: http://www.sonic.com/products/Developer/AuthorScript/quicklook.aspx.