this post was submitted on 27 Feb 2024
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I'm no legal expert but Nintendo's argument seems to surround a video game emulator being a tool whose primary use is to facilitate illegal circumvention of DRM and piracy. Nintendo's use of emulation for a legal means to resell their games on another platform, could suggest otherwise. The possible use of a ROM illegally distributed by a 3rd party as inputs in a legitimate Nintendo emulator (though Nintendo denies this) could help separate the issues between ROMs and emulation, because Nintendo's emulator isn't used for piracy.
Nintendo could use a copy of the freely available Yuzu to emulate Switch games on their rumored Switch 2, if they were so inclined, and it would be a legitimate use case.