In order to get the Raspberry Pi's pricing down to a low point, there had to be some cuts made to its abilities. First of which, was the cull of MPEG-2 decoding. MPEG-2 licensing fees would've increased the Raspberry Pi's pricing by at least 10%.
But, it looks like the foundation has found a way around this, and for just $3.16, users can purchase an individual MPEG-2 license for each of their boards through the organizations' online store. The same goes for Microsoft's VC-1 standard, which can be purchased for $1.58.
H.264 encoding isn't left out, with OpenMax components needed to develop applications with H.264 functionality, and are now enabled from the latest firmware. With CEC tagging along for the ride, we're also looking at XBian and OpenELEC operating systems that can use a single IR remote to control a Raspberry Pi, a TV and other connected goods.