Online cheating doesn't affect money flow for them so it doesn't matter.
Yes it does. It's cheaper to make a fun online multi-player game than a good single player one. For a start you don't need to put as much money into AI design, you don't need as many levels, or any where near as much design work putting into them. If people think there is no chance of playing a game without a bunch of cheats ruining it they won't buy the cheaper to make online games.
Mario Kart Wii has its fair share of cheaters but it still sold over 22 million copies.
Nintendo's expertise is not in online gaming anyway. It's in single player or local multiplayer gaming. The only good Nintendo game that comes to mind that had a well-structured and enjoyable online was Mario Kart Wii (don't say SSBB had good online, it sucked online).
RaaTheGodEater said:
QUOTE(Wintrale @ Oct 9 2010, 09:52 AM)
So what Nintendo are saying is this... "Piracy isn't as much of an issue because we can always focus exclusively on casual titles that the pirates won't even want to pirate, instead of the ground-breaking titles that cater for both hardcore and casual gamers. We still make lots of money, potentially even more than before, and only one segment of our user base suffers."