Modchips for the Nintendo Wii appeared just a couple months after the console’s availability, opening up the black market for the piracy of Wii games. Following the release of the modchips, the demand of the Wii soared in places such as China, since pirated Wii games could be purchased on the black market for approximately $1.30.
Nintendo is finally putting some effort into thwarting the viability of Wii mods, as reports from Japan indicate that the latest console hardware revisions are now much more difficult to modify with current chips. Three pins used by current modchips to alter the console’s drive software are reportedly now physically cut, making modifications impossible for all but those with highly advanced skills and tools. The hardware revision has only been discovered in Wiis from Japan, though it’s reasonable to expect that anti-mod measures will soon make their way worldwide.
News source: DailyTech
Nintendo is finally putting some effort into thwarting the viability of Wii mods, as reports from Japan indicate that the latest console hardware revisions are now much more difficult to modify with current chips. Three pins used by current modchips to alter the console’s drive software are reportedly now physically cut, making modifications impossible for all but those with highly advanced skills and tools. The hardware revision has only been discovered in Wiis from Japan, though it’s reasonable to expect that anti-mod measures will soon make their way worldwide.

And from my understanding, this particular "mod chip" wasn't really that advanced anyway and as far as electronics go, a cheap hack at best.
These haven't just been seen in Japan either, there have been quite a few found in North America as well. If you buy a Wii right now that still has these legs on the chips they've been sitting in a warehouse somewhere for a few weeks or in transit.
Import games are an odd little niche.
It's frequently not even that the games are massively cheaper overseas (especially once postage is factored)-- but rather that it's not available immediately or at all locally.
By locking out foreign titles, they're basically saying "Don't buy something! Come back in six months, or maybe never, and THEN buy it." Can you imagine any other business like that?
I'm fairly certain their marketing guys will figure out if the export companies represent a non-negligable percentage of sales, and if so, then maybe they should go for a translated version.
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