You pretty much have no idea what you're talking about, other than that piracy is a big problem there.

The notion that no one in China can afford a console is pretty amazingly contradicted by the fact that more people play WoW in China (3.8 million) than do in the US (2.7 million). Meaning the online, PC gaming community is at least as big in China as it is in the US, if not bigger.

Explain to me, please, how a country that supposedly can't support a 250 dollar console can support high level online PC gaming -- and support it better than the United States, no less? 

 The Vii of course (Because is a national product), the Wii is doomed!

 I think the price is more important why it will sell a lot or not.

it's a good idea because even though it's not gonna happen really soon, China is eventually gonna be under too much pressure that they will have to recognize copyrights regulations.

Now is a good time to move into China because there are Chinese gaming companies going after piracy. This is the beginning of the end for the era where the government doesn't count. The reason they have been so lax in the past is because China has never cared if foreigners get screwed. But if they are going to support their own companies in terms of piracy, they are going to support foreign ones in the future as well just because of their own market's growth potential related to those products. Still a long way to go but...

The Wii is the perfect product to sell in China as far as gaming goes. It's cheap to build and very cheap to program for. Chinese companies can find a niche on it, Nintendo will never fail to make profit off of it (even if their traditional 3Ps might), and the whole idea of channels and downloadable content really blows piracy right out of the water.

This is, however, the only chance in hell John Lucas even comes close to being right. China has to be cracked wide open in a very big way within this generation to get any console selling as much as he sees the Wii selling. That'd mean they'd have to accept the product, piracy would have to be contained to some degree (though there's no way it'll be stopped) and their "middle" class needs to expand rapidly so that more than about 1/5-1/6 of the population can afford the thing.

There's big potential here, but I don't think it'll matter enough until the next generation is ready to begin. By then, the Chinese people should be more comfortable with the idea of consoles and may have control over their piracy issues. For this generation, though, I can't see China cracking the top 5 European countries numbers outside of (potentially) hardware. The software sales chart for China is going to look dismal.

Yep, and that's my idea of true blue ocean strategy.  Nintendo is almost certain to make a profit in China and establish their brand name for future generations while the competition would be torn to shreds if they even tried to move in because of their willingness to lose money on the systems in order to sell games.

If Nintendo does make a dent in the Chinese market we can pretty much be certain this is the last time a console is sold at a loss.

As others have said, while China is on average very poor it has one of the most skewed income districutions in the world.  Half the population is comparable to Africa (incomes under $500), around 40% is closer to Southeast Asia (under $3,000) and the remaining 10% averages more like Latin America (under $10,000).  There is a small percentage, 1-2%, who do live like Western Europeans.  The stat that something like 10-20% do comes from using PPP which is a deeply flawed method of comparing incomes between developing and developed countries.

Nevertheless, that means close to 10% of Chinese are potential video game buyers which would equate to 132 million people and about $840 billion (check the CIA World Factbook if you want to verify that figure).  That would put China's gaming population roughly equal to Japan, Russia, or France&Britain while their income is in the realm of Brazil, Spain, S Korea's.  Nothing huge but nothing small either and it should grow to the size of Italy or so by the end of the Wii's life.

This does bring up though something I mentioned in one of my first posts on VGChartz (I may have made a thread about it, I don't remember) about the Wii's potential global sales.  The PS3 or 360 is out of reach for anyone below Western European incomes and even those at American/Japanese incomes don't buy either in great quantities.  The number of people in Russia, China, India, and Brazil who are at W Euro income levels much less American/Japanese is very tiny.  $250 is much more accessible and so Nintendo could reach up to 400 million potential consumers in the BRIC countries that Sony and MS can't touch.  The only question was whether Nintendo would take advantage of the opportunity.  It looks like they will.

As a side note Bod, those Chinese playing WoW are not necessarily people who can afford a gaming console.  They primarily play at internet cafes since few Chinese own PC's much less gaming PC's so they just need to pay the sunscription fees. 

 With all things considered, you're comparing the American population (which is roughly 300 million people) to the Chinese population (roughly 1.8 billion people).