This is a meritless case contrived purely for harassment. Emulation software has survived these challenges several times over.
United States
As computers and global computer networks continued to advance and become more popular, emulator developers grew more skilled in their work, the length of time between the commercial release of a console and its successful emulation began to shrink. Fifth generation consoles such as Nintendo 64, PlayStation and sixth generation handhelds, such as the Game Boy Advance, saw significant progress toward emulation during their production. This led to an effort by console manufacturers to stop unofficial emulation, but consistent failures such as Sega v. Accolade 977 F.2d 1510 (9th Cir. 1992), Sony Computer Entertainment, Inc. v. Connectix Corporation 203 F.3d 596 (2000), and Sony Computer Entertainment America v. Bleem 214 F.3d 1022 (2000), have had the opposite effect, which has ruled that emulators, developed through clean room design, are legal. The Librarian of Congress, under the Digital Millennium Copyright Act (DMCA), has codified these rules as allowed exemptions to bypass technical copyright protections on console hardware. However, emulator developers cannot incorporate code that may have been embedded within the hardware BIOS, nor ship the BIOS image with their emulators.
An international company like Nintendo has the privilege of being able to choose the venue for their litigation (they can claim damages occurred in any one of them). They can file the case in any federal circuit court they want based on whether they think the judges might be amenable. This increases their odds of forcing the defendant to appeal, making things very costly. They don't have to win the case, they just need to destroy their opponents financially or intimidate them into a settlement.
Tears of the Kingdom broke into the top ten best-selling first-party titles on Nintendo Switch, entering the ranking in ninth place:
So you claim emulators hurt your sales by allowing people to play a week before release, yet because in part of the checks notes (7/10 ratings) it managed to achieve a top 10 of all time sales.
Looking at some of the Discord quotes from the lead dev Nintendo quoted here I fully understand and empathise why the PCSX2 devs you out of existence if you say anything about ROMs
I've really been dragging my feet to jailbreak my Wii so I don't have to pay $300 for Colosseum.
Granted, I don't game all that much these days, so I at least have my reasons.
Eh, the hardware for Gamecube is already in there and I like doing half-assed Ribbon Master challenges, so it works better with my DS and GBA Pokemon games.