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Lingyis said:

Since he bought the Wii and showed it off in front of relatives and friends, they have bought 7 Wii's. Well, at least Ninty makes a profit on each hardware distributed, smuggled in or not.

 

It's still doubtfull if Nintendo gets any money for these consoles in China. Nintendo assigns the assembly of Wii consoles to 3rd party factorys and orders a specific amount of consoles for a lump sum. It's quite common for those factorys to produce small amounts of surplus consoles.

They have the material but Nintendo didn't order those consoles, therefore those unofficial Wiis aren't shipped to Nintendo but appear on the black market and the profits go to the factorys (this has also happened to Sony with PS3 factorys. Nearly every PS3 that was brought to Europe via privat importing before March 23 was checked by the customs to find out if it's a leaked one).