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re: Nintendo's ability to ramp up production, I think there's a crucial difference between Nintendo's manufacturing model and that of, say, Apple with the iPod. While Apple's products are assembled entirely from commodity parts purchased from outside suppliers (plus some simple/cheap bespoke bits like cases), Nintendo actually owns (if they've stuck their their traditional model anyhow) much of their fab' in order to keep down costs (the alternative is to end up in the Xbox1-Nvidia squeeze). While there are lots of commodity parts in the Wii, a lot of it is actually very bespoke. E.g. the Wii CPU and GPU have effectively zero value to anyone who's not Nintendo. While they can certainly contract outside chipmakers to make more, they will pay for that, and they won't have much if any wiggle room in terms of their order.