N-Sider Smaug says:
"Nintendo's newest console isn't just another console. It is a console with a mission and a focus. Every aspect of its design was generated for the primary purpose of catering to the heretofore uncatered to demographic known colloquially as "non-gamers".
We could see this last year. The visual design of the system then known as Revolution was anathema to that of GameCube. Where the Cube's visual design was repellant, the Revolution would be enticing. Where the Cube was "kiddie", the Revolution would look like just another piece of electronics equipment.
Later that year, we saw that this newest console would not only look like a regular piece of electronics equipment; it would even have a remote controller just like such equipment. For reasons best not discussed here, console controllers are considered off-putting to those not used to them, what with their numerous user-interface devices. Nintendo specifically opted to put as few UI options on the controller as possible, much like Apple's constant push against multi-button mice. Additionally, physically moving the remote controller would serve as an input as well, thus theoretically making certain actions function better for non-gamers.
Earlier this year, it was confirmed that the technical aspects of this console would not be in line with what was generally expected. Indeed, the console's computer hardware could best be described as an over-clocked GameCube with more RAM. The reasoning for this decision is obvious: $200 is not something non-gamers are going to be willing to pay for gaming. $400 isn't even on the table for discussion. GameCube's base hardware is considered "sufficient", and Nintendo doesn't have to spend much money on hardware R&D. Those savings are passed along to the non-gamer populace.
Each of these aspects of the console's design were carefully and willfully chosen because they play towards the console's demographic of choice.
"...the fundamental problem with the name "Wii" is that it does not in any way compliment the goal of the console...."
So the fundamental problem with the name "Wii" is that it does not in any way compliment the goal of the console. It doesn't evoke the feeling of another piece of electronics. Indeed, it doesn't evoke any feeling at all. It doesn't help sell non-gamers on the console.
There is even a fundamental disparity between speaking the term aloud and reading it in text. As a written word, it is kind of like a backwards iPod, where the 'i' comes at the end. It looks like someone is trying to be kind of interesting with their naming. It could even pass as a DVD or VCR or other 3-letter acronym/product.
As a spoken noun, it is a grammatical error. "We" is the first-person plural personal pronoun. It's important to parse that last sentence correctly: '"We" is the first-person plural personal pronoun'. The English language isn't replete with pronouns; we only have one first-person plural personal pronoun. The language cannot afford to have that sound co-opted into a noun describing some product. The product pronounced "We" is actually in competition with a grammatical construct with the English language.
Attempting to turn everyday language into a product's name is typically not an effective way of getting your product in the door. The ultimate goal of a marketing name is for speaking the word to eventually evoke the product itself. The more commonly the word is in usage, the more difficult it is to establish this. Amazon did it because talking about the jungle isn't terribly common. Wii has a problem because "We" is a pretty common world. Not only is it common, it is an irreplaceable feature of the language. The Amazon is a proper name; one of millions. "We" is a pronoun; it is the only one of its particular kind in the English language.
So the hope of the marketing department is damned from the start. The text "Wii" can become synonymous with the product easily enough. But the pronunciation of it makes it virtually impossible for the text to translate over into the spoken realm.
Co-opting of personal pronouns aside, another problem relating to the pronunciation of the name is that Wii isn't pronounced "We". A double-'i' at the end of a sentence is usually pronounced "eye'eye". A double-'i' in the middle of the sentence is usually pronounced "eye". In no case before has a double-'i' been pronounced with a long e.
When people read about Wii, they will attempt to pronounce it using modern pronunciation mechanism. Because of the above, they will not come up with the Nintendo-defined name of "We", but something else. This will require that Nintendo's paper marketing will need to appropriate space for explaining how the word is expected to be pronounced. That is valuable real-estate that could have gone to something else.
Worse still is the potential reaction to see a name and being told a pronunciation that one knows is simply incorrect. Perhaps the person will think that the company is just making up their version of English. At the very least, the disparity is confusing. And creating confusion is rarely effective marketing.
So the real problem isn't necessarily the three letters 'W' 'i' 'i'. It's the way these letters are spoken, as dictated by Nintendo. People will certainly be able to effectively communicate, but it makes that communication needlessly difficult.
"...people will simply rebel at the idea of using a pronoun as a noun, and instead say it differently...."
I actually predict, for the sake of clarity, that the pronunciation of the name will be changed, either by Nintendo fiat or by consensus of people talking about it. People will simply rebel at the idea of using a pronoun as a noun, and instead say it differently. Perhaps they will simply speak the word "We", but in a different register of voice. Maybe they'll hold the 'e' longer than normal. Or perhaps they will simply pronounce it as written and say to hell with what Nintendo wants.
The name isn't going to kill Wii's chances. But it is certainly a misstep. And an unnecessary one at that. It isn't quite as much of a misstep as the "purple lunchbox with handle" design of GameCube, but it is equally as unnecessary. Every other facet of the design is focused towards Nintendo's goal. The name could and should have been a part of that. It isn't; it's a good idea for no one that speaks English, whether gamer or not. This is, at best, a missed opportunity. At worst, a misstep that would serve to impede Wii's progress."