Increasing production is as risky as archmagus said -- no one can reasonably deny that -- but it's a risk that Nintendo needs to take, and a risk that they can afford to take. The Wii is already very profitable, and there is at least enough demand out there to eat up several million more units. In a worst-case scenario, Nintendo would increase production and not sell out immediately, but they could store these and then easily deplete a stockpile of a few million Wiis this holiday season, especially with Mario/Metroid/Brawl coming out. Remember that Nintendo is not taking a loss on Wii production, they sell tons of first party software, they have the Virtual Console, they have the DS continuing to print money -- it's a no-brainer, take the risk.
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