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True, if they went to court and lost, every emulator project would likely be sued. But settling out of court also sets a precedent, or rather perpetuates the current status quo of crushing any vaguely gray area fan project with the threat of legal action. The shutdown of Yuzu will embolden Nintendo, Microsoft, and Sony to be more aggressive about killing off these projects. Until someone does take one of these three to trial and wins, things are going to continue getting worse for game preservation.
Capitalism taking its’ course until we stop it, I’m afraid.