I don't know what the fuck you do about any of this but we are going to have to figure out some kind of Middle ground between every single console game can be pirated with ease on your PC and none of us were allowed to own hobbyist PCS anymore.
Don't mind that you contradicted yourself here in ways you probably don't realize.
"There ought to be a law" isn't a double sided sword, but you're wielding it that way. Why do we have to figure out anything? Do you want to protect Nintendo (and all the corporations you derided in your post) or do you want liberty to use your "hobbyist PCS" as you see fit?
Freedom is scary. People will do shit you (and me) won't like.
Here is my take as a Libertarian. Copyrights and Patents ought to be taxed by the holders of those protected classes. Choosing to not pay those taxes liberates those patents and copyrights to the public domain. How this works in Nintendo's case here is ... I doubt they'd be spending millions protecting old titles in perpetuity and they'd be released to the Public. Copyrights and Patents ARE a creation of the state, protected by laws of the state, enforced by the power of the state and ought to be paid for by those it protects. These taxes could pay for a great deal, and once they no longer benefit the holders, become public and benefit everyone everywhere equally. This is the one kind of tax that I can get on board with, because it is 100% voluntary and doesn't force anyone to do anything.
In this case here, what I run on my PC is my business. The tools for allowing me to run Nintendo's "Property" aren't Nintendo's, and they have no control over my stuff at all.
Mr. Universe, a technophile and information broker who broadcasts uncensored truths across the system, telling Captain Malcolm Reynolds: "Can't stop the signal, Mal. Everything goes somewhere, and I go everywhere." - Mister Universe
(see also, Streisand Effect)