The only reason I would ever pirate Nintendo's software is if they were not willing to give me games that I want. What I mean is that Rareware title will never come to virtual console, but if an opprotunity came about where I could put those pirated games onto my wii VC I would probably do it it in a heartbeat. Now, if Nintendo wants to combat this, they should open up to the idea of allowing more popular non-first party games on the service. Rare titles are just an example and there are plent of others that I want as well.
The same goes for emulation. I read on craigslist where a guy was advertising that he had modded his wii's hombrew channel to play GC, Dreamcast, Saturn, SEGA CD, PS 1 and 2 games off of an external hard drive. I realize that Sony consoles will never come to Nintendo's VC service, but if this guy has found a way to emulate this hard ware, Nintendo needs to get on the bad wagon and offer it legititmatly so that people will be less inclined to pirate.
Nintendo will never be able to stop piracy in such places as China, but they could slow it down in the west by basically beating the pirates at their own game. There is no doubt that pirating software is dangerous and costly for the people who do it, Nintendo can afford to beat them at their own game.
Nintendo should go after pirates the same way as a cancer. Basically stop the proliferation by making the technology harder to copy and then go after the pirates either by law suits, or like I said before offering the consumer the pirated software honestly.
Does Sony, Apple and Microsoft suffer from the same problem? If so, how bad?