"NEW: Nintendo is suing the creators of popular Switch emulator Yuzu, saying their tech illegally circumvents Nintendo's software encryption and facilitates piracy.
Seeks damages for alleged violations and a shutdown of the emulator.
Notes 1 million copies of Tears of the Kingdom downloaded prior to game's release; says Yuzu's Patreon support doubled during that time. Basically arguing that that is proof that Yuzu's business model helps piracy flourish."
They might have a case if yuzu is actually decrypting switch software. That would be stupid of the developers, though. I would assume that they require you to provide decrypted games.
That's basically the only leg nintendo has to stand on here, but nintendo can out lawyer you into the poor house regardless.