"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."
Yuzu doesn’t include any form of tooling that breaks encryption
You cannot state that with certainty. That's the problem.
Yuzu does indeed include a method to use the Switch's production keys (which you must dump yourself) to decrypt the games. Whether this constitutes effective DRM is not a question that can easily be answered and must be decided by a court on a case-by-case basis.
This will be what the case will hinge on: Is Ninty's scheme effective DRM?
I would say no because symmetric encryption with a publicly known key may aswell be no encryption at all but that's not my decision to make.
They aren’t facilitating it, the user has to provide all of that chain of the emulation on their own.
Um, no. The emulator is doing the decryption on its own. All the user does is provide the prod keys and unmodified ROM.