I would say the game sales numbers and attach rates indicate that piracy is not as big of an issue as you would like it to be.
If anything, the Wii is in the most danger, given the lower attach rates, particularly for "core" 3rd party games. Let's face it, it's the "core" gamers that are likely to know where to get a console modded.
But is Nintendo losing money? Nope.
Better luck next time, but I'm guessing the straws to grasp onto are getting fewer and fewer.
EDIT: Google FragFX and you'll see which console has the modded controller problem







