"Nintendo enters the movie industry" Remember hearing that, oh, about a month ago? Yeah, their excuse for not putting a DVD player in was two fold. They initially said that the gamecube was to be a game machine, and they put that in its name. What people don't like to remember, is that there was a time where that changed, and they expressed their concern over the cost of adding a DVD player. They let Panasonic release one though, because it was their overhead. After a little bit, aparently, somebody didn't like the sound of money being the issue, so they went back with what they originally started with, and that was that they wanted the gamecube to be focused on games.
I may be mistaken, but I don't seem to recall Nintendo saying that as a company they were only focusing on games, but they applied that to individual systems.
Either way, I think this is an awesome idea, and is really holding sway in me picking up an SP or DS. I think it was a wise move to cater to both the GBA and SP market, effectively draining Sony of half of the appeal to the PSP. With such a large GBA userbase, I don't see how many people would prefer to pay 200 dollars, base price, for a PSP to play MP3's or MPG's when they could just buy this. Wise movie. Wise move indeed.