Telemetry showed how the emulator (which is no longer available) was being used to run pirated games.
On Twitter, a user named Hikiko wrote that the developers of Yuzu settled a lawsuit with Nintendo out of court for a reason. In many cases, they could have been legally punished for making and distributing ROMs, but it was only between developers, because in many cases it happened before the games were released (The Legend of Zelda: Tears of the Kingdom was probably one of them), and there were even a bunch of ROMs on their Discord server. Nintendo’s undercover agents were there, watching. The developers have now handed over all electronic devices, websites and logs, including telemetry of “anonymously” collected data!
So the developers of a Nintendo Switch emulator gave all their data to the big N, so the Japanese company knows who developed it, who supported it on Patreon (and how they paid), and so on. And who knows what Nintendo will do with all that data, and Yuzu’s developers have essentially protected their own skins by selling users and other developers to the devil. Even though the Yuzu team has set up an LLC, anyone outside of it can and will be targeted, and they will likely be asked to pay substantial compensation.
And let’s not forget how diligently Nintendo protects its own property (IPs). They obviously don’t care that it was possible to use Yuzu (and Ryujinx, and the development forks mentioned yesterday, Nuzu and Suyu) legally, because once you buy a game, it’s legal to backup it. (Downloading a pirated copy is not illegal once you buy it…)
What would Nintendo say if someone emulated a game and then bought it without owning a Switch?
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