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Nintendo Supports US's Anti-Piracy China Measure
Earlier today we discussed the China/US Piracy clash, and it's worth noting that yesterday Nintendo came out in strong support of the US's position. Gamasutra reports that an estimated 7.7 million counterfeit gaming products have been seized in the last four years of piracy raids. "According to Nintendo, China has continued to be the leading production site and exporter for counterfeit Nintendo products, and has the largest domestic consumption, and in 2006 alone the company estimates that the overall industry lost $762 million due to piracy. Commented Nintendo in a statement: 'Despite the millions of counterfeit Nintendo products seized from retailers and manufacturing plants in China through the years, there has only been one criminal prosecution. Numerous factories, where tens of thousands of counterfeit Nintendo products were seized, escaped with only trivial fines or no penalty at all.'"
Do you have any evdience? The world you describe sounds plausible, except that it assumes that Nintendo cares about media buzz more than profits. In the real world, it is Nintendo that cares about profits, and Microsoft and Sony that care about media buzz. Note that Nintendo is earning a profit and getting media buzz, but MS and Sony are only getting media buzz (and a lot of that buzz is negative, too). I don't think Nintendo needs to be playing with supply in order to boost their long-term profitability.
In fact, I don't see how an artificial shortage could help Nintendo at all at this point. They are already guarenteed at least some (positive) buzz from the geriatric market, so the Wii is not in danger of disappearing below the radar. Right now, the Wii needs to build up a large installed base so that third party developers will take it more seriously and actually make games that are well suited to the Wii.