In an E3 investor Q&A from June 8, which has now been translated into English, Nintendo CEO confirmed that the Wii U will not support DVD and Blu-Ray playback.
Responding to the question "Are you planning on making the Wii U more of a home entertainment console by including Blu-Ray or DVD drives, or is it going to be more like the Wii, and just be more of a pure gaming console?" Iwata replied with the latter option.
"Wii U does not have DVD or Blu-Ray playback capabilities," he said. "The reason for that is that we feel that enough people already have devices that are capable of playing DVDs and Blu-Ray, such that it didn't warrant the cost involved to build that functionality into the Wii U console because of the patents related to those technologies."
Wii U uses a proprietary format of optical disc which is different from the original Wii's discs. The Wii U does, however, also support Wii discs, but not Gamecube media, unlike its predecessor.