https://twitter.com/stephentotilo/status/1762576284817768457/
"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.
AFAIK rooted Switch consoles are used to decrypt the games and Yuzu just tries to execute whatever nonencrypted Switch binary. Unless Nintendo can prove that either the Yuzu developers themselves are behind ripping commercial Switch games or directly colluded with the rippers, they’d have a hard time to actually win. That said, regular people with normal income levels will probably just sign everything because a prolonged lawsuit is about just bankrupting them, not being ruled the win by the judge.
From their own guide
Their guide also talks about dumping games from your console so I’m not sure how far it goes, but if they want console keys they are likely decrypting something