"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 didn't expect it to happen because of all of the landmark rulings in the past that emulators are inherently not illegal unless they provide bios to the end user. The only reason why Nintendo is acting now instead of years ago when Yuzu first hit the scene is because it's in basically a fully working state now and they somehow verified that 1,000,000 people downloaded TOTK. I suspect far more copies of BOTW and Mario Odyssey were downloaded prior.