While Nintendo generally makes a profit on every system sold, each Wiimote actually costs over six hundred dollars to produce. On top of that, Nintendo has to maintain an active connection with each controller-- the Wiimote works by sending extremely sensitive GPS data to Nintendo, who then calculates the approximate movement relative to their Wiimote-tracking satellite, and transmits the information to the Wii via an experimental super-high-speed long-range wireless Internet connection. Oh, and also NiGHTS 2 is going to be a pachinko game.
We didn't feel like discussing real aspects of the Wii today. We do that every day. No, we just want to make stuff up. Let's discuss the really interesting things that are going on in the world of Wii-- the things that aren't actually going on.