Nintendo have made changes to their Wii console hardware to disable the current generation of mod chips. The chips come pre-fitted from some suppliers in Shanghai (at a $100 premium) or can be added after market. Modifying the Wii means that pirated games can be loaded onto the console, and in Japan these cost as little as $1.30.

They have blocked the current generation of chips by removing 3 connections which were used to connect the chip and allow it to hack the drive software. While this will work for now, workarounds will still continue and all Nintendo can do is slow down the piracy actions. Source

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