The reason is that Nintendo needs to concentrate on its production lines to ensure enough devices for the Christmas rush this year.
The company had planned to add DVD playback to the device in the second half of 2007.
It is not yet clear whether Nintendo will add the functionality through a firmware update for existing devices or roll out a whole new generation of consoles.
Cumulative sales of Nintendo's Wii have overtaken the Xbox 360, despite Microsoft's 12-month head start.
The Wii came out ahead with nine million sales, a fraction over the Xbox 360's 8.9 million, and both trouncing Sony's 3.7 million PlayStation 3 sales.
The figures were obtained from market watchers Enterbrain in Japan, NPD Group in the US and GfK Group in Europe.
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