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Nintendo is very Japanese centric in it's thinking and to my understanding the Japanese home adoption of internet was lagging behind the rest of the world. Nintendo even partnered with one or more of the Japanese service providers to try to encourage more people to be online, including the Wii TV Channel and ordering food online through your Wii in Japan.

In Western markets this is of course complete hogwash. We've been gaming online since Unreal and Quake on PC.