Yes it does. The DVDs are PAL (R4).
By the way, Nintendo for fuck sakes rename the "New 3DS" as the Super 3DS!
DVD= Designed to work with analogue systems.
Old consoles= Analogue output. PAL/NTSC terms are valid here.
Today's consoles= Digital output (plus analogue output in some cases). PAL/NTSC terms may be valid here.
Handhelds= Doesn't use a video output (to TV) at all. Broadcasting standards do not apply here.