It certainly can be in China!
Of course it isn't anywhere else. I really hope you didn't think I was talking about anywhere except China.
But in China, if Nintendo didn't get a patent before these people came up with the "Vii", it's very possible these people copied all the same tech. I'm not sure how international patent issues work. But if they copied the same tech and patented it in China, then it's basically over for Nintendo's plans going to China.
However, I doubt they have the same tech. Nintendo probably owns legal rights to their tech worldwide, and these guys just copied the closest legal thing. But that brings another thing - reputation. If most Chinese residents find this thing to be of poor quality, with how similar it is to the Wii, they may attribute that same level of quality to the Wii as well.
The Vii has been out for quite some time now. We're talking almost since Wii's launch. That's almost two years head start on Nintendo in China. That's a lot of time, and far more than enough to develop a reputation and/or a fanbase.
You have to look at it like an ordinary Chinese resident. Someone whose entire life takes place in China may not ever have heard of this Japanese product. They know about Nintendo, but perhaps not the Wii (I mean, many ordinary Americans didn't know about the Wii until its launch HERE). They hear about this Vii thing, think it's the first of its type, then a couple years later, that Japanese Nintendo company comes around and releases a system just like it. They hear it's supposed to be better, but better than crap doesn't mean much. So they stay away.
Granted, I don't know how the Chinese culture is in respects to keeping up with stuff like that, but I'd have to say it definitely will affect things. How much? We can't be sure.
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