I don't blame Nintendo for going after the emulators. These emulators essentially give people the opportunity to play enhanced PC ports of Switch games – for free. With PlayStation and Xbox PC enhanced ports, people have to buy the games from Steam, so Sony and Microsoft still get
something back. But with Switch emulation, if you can get the keys and firmware without buying a Switch, which is possible from what I understand, then Nintendo gets
nothing.
In other words, people can play Nintendo's multi-million dollar games for free, and Nintendo loses out on both hardware and software revenue. Why wouldn't Nintendo want to stop that? It'd be bizarre if Nintendo just sat back and ignored it. I also think Nintendo knows that Switch 2 is unlikely to top Switch 1 lifetime hardware sales, which makes every hardware and software unit sold even more important for Nintendo's next gen strategy.
Nintendo will have more portable competition this time round, too, with Steam Deck and possible portable offerings from Sony and Microsoft, which is why Nintendo will want to ensure that anything that results in a loss of hardware and software revenue is ideally eliminated. Unlike the Sony and Microsoft, Nintendo's main business is video games. Microsoft can lose its video game business and still survive. The same can't be said for Nintendo.
Nintendo's also going after YouTube accounts that post footage of Nintendo games running on emulators.
Nintendo Is Now Going After YouTube Accounts Which Show Its Games Being Emulated