Apparently, the Nintendo DS can play back movies. Don't get too excited about it, though.
Chris Morris, the resident game business expert over at CNN Money, talks about an analyst report about the Nintendo DS in his latest column.
The report in question is stating that a full two-hour movie stored on a 128MB flash cartridge has been played back on the Nintendo DS. The analyst then comments, perhaps a bit out of context, that "this is a change in Nintendo's traditional focus as a gaming company, but, in our opinion, a necessary move to not only protect its market share in the handheld space but to also expand its revenue streams as its gaming enthusiasts grow older."
While the report did say that the DS was capable of video playback, it did not say that it was Nintendo was behind the breakthrough, nor was this supported or endorsed by the company. In fact, Nintendo said, as stated in the Morris article, it doesn't comment on speculation, which this clearly is. (The GBA can also playback video, soon up to 90 minutes of it, courtesy Majesco.)
Even so, if the DS can unofficially play back a full-length feature movie, it would be another bullet for Nintendo to load into its gun named Nintendo DS, which many are saying that will be the device that goes head-to-head against the Sony PSP.