Comment Not breaking the DRM, need an actual Switch (Score 2) 107
it's an actual product that they're still selling in stores and trying to earn a living from it really is enabling piracy that's cannibalizing their sales.
(Keep in mind that Nindento is typically making money by selling games. In the whole gaming sector, consoles are usually either sold at a loss, or close to costs. Selling fewer Switches isn't costing them money, only public visibility and less lock-in. So the whole arguments of emulator versus sales of machines isn't very convincing).
Yuzu technically cannot cannibalize sales of Switch consoles: it doesn't break the DRM. Instead it relies on duplicating the key of a Switch you already own
(and Nintendo's argument is that you need to hack the Switch in order to do so, which would be some DCMA violation, and Yuzu's website or Discord is pointing to instruction how to do so).
The way the DRM scheme is designed, you couldn't use Yuzu without an actually paid-for Switch (though probably some pirate could try using keys downloaded from some warez website. Though Nintendo could very trivially black list those DRM keys).
The main use of Yuzu (given the way it is designed) is to allow you to leave your Switch at home, only take your, e.g., SteamDeck with you, and still be able to run your usual games while pretending to have your exact Switch (and it's DRM keys) with you.
The advantage being not needing to lug around multiple devices, higher performance of some platforms (including SteamDeck), or alternative inputs (e.g. accessibility).
Nintendo argument is that running game on non-Switch hardware is a violation of Nintendo's licensing term and they only should decide which devices you're allowed (or not) to run your games on.
AFAIK Nintendo games nowadays employ per-copy keys, so it would be more difficult to use a pirated copy downloaded from the internet than a dump from your own game using your own Switch (which need to be hacked, so again Nintendo arguing the same DCMA violations and links-to-instructions as above).
Tears of The Kingdom is a bad example, as the version pirated before release wasn't used on Yuzu but on Ruijinx back then.