http://kotaku.com/gaming/if-you-build-them/nintendo-increasing-wii-production-279105.php

Well that's just a rumor, so let's wait and see.

It would be pretty stupid for them not to. God only knows how many of these things N would sell if they weren't supply constrained when the holiday season hits. Galaxy, SSBB & Wii Fit combined with the general spending frenzy associated at that time of the year would move an insane amount of hardware. Assuming that they will be supply limited I expect the sales to be merely very good this winter.

I read somewhere that Nintendo will open a factory in Brazil.

http://www.neogaf.com/forum/showthread.php?t=155454 

Nintendo's claims to have increased production so far have not been confirmed in a visible way. I would stay weary of this info until we get any solid numbers from retail shops.

I thought they were increasing that already months ago? At least that was the news back then, Nintendo was looking for more manufactories, I doubt it though... perhaps for Europe but not for the US and especially not for Japan.

Can anyone think of a good reason why Nintendo still hasn't significantly increased their Wii production? If I were making the big decisions at Nintendo, I'd drive production over roof and drop prices by 50 or 100 as soon as the consoles spend more than a week on the shelves. They could easily afford it, and it would guarantee them the largest market share. Maybe they're still being too cautious, or have been increasing production all along and are stockpiling for the holidays?

I think they have increased shipments to Europe, at least to Sweden. A few months ago they would sell out and not get any Wiis for weeks, but now they get steady shipments. At least at the one store in Stockholm where I often check inventory status (Webhallen).

I also wonder if N is stockpiling. Does this strategy even make business sense and does anybody know of a comapny which has done exactly this in the past?

If they're not stockpiling I think the 360 and possibly PS3 could do some real damage to Wii's install base lead it will have at that time.

 In Japan, Marketshare is not as important as pure profit.  Only in America is Market Share seen as meaning anything and lately that has been slowly changing.  We see a lot of huge companies, not making money with huge market shares.  It makes no sense as an investor as it clearly means that profits will be even harder to come by if they've already been hard to find. 

So, NO... Nintendo should not risk everything to go for a larger market share.  What they have been doing with the DS and Wii makes wayyyyy more sense...  if the console starts selling poorly...  change it's color.  It'll sell more consoles that way then on a price drop.