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It's over simplistic to say they can just open up new factories and start producting more units. You also have to deal with dozens of subcontracters that have to deliver components as well. If any of those subcontractors fail to supply parts, the whole production line stops.

In addition you also have to hire and train additional support staff to handle the increase in user base. Nintendo is known to have high standards when it comes to support, so they will spend more time and effort to adequately train and resource their employees. To simply toss out millions of Wii into the world without proportional support increases could be a disaster.