What are your thoughts on making up fake brands or titles vs using real ones?

What are your thoughts on making up fake brands and titles for things mentioned in writing that are clearly meant to represent a real thing? I’ve seen different writers both use real brand names for things and make up off brand ones. Like for example saying Minecraft you say Blockcraft or instead of Cheerios you say Circle O’s.

I know it’s technically allowed to say real brand names as long as you aren’t painting them in a bad light, but I still feel kind of iffy on if I should actually do it or not. I think it could help add immersion if the story is set in the real world, but if there’s too many brand names mentioned I feel it seems sponsored or something.

I also feel like replacing the names with obviously off brand ones can feel kind of corny in my opinion, and could throw off my immersion. The plus here is that it just feels safer.

I’d also like to ask opinions on what you think I should do with this:
I have a scene in my book where two characters are using a Nintendo Wii and making Mii characters on it. The scene is important to move the plot because one character notices a Mii on the system who she doesn’t recognize and that’s what triggers the conversation about the new person the other character was hiding from her. Like who were else were you playing here with?
Do you think I should just change the brand names, leave it, or come up with something else entirely to get to the same point?