Here in America, laws and rules don't mean shit. Corporations can do whatever they want.
Especially with the retard running this country now.
Nintendo wants to ban you, stop you from downloading games, stop you from running illegal/legal games, they can do it.
If any of you have the money, time, and legal resources to fight them, go right ahead and let us all know how it works out.
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And in that same EULA, does it say that you are not to use the hardware for any illegal purposes? And if you do, that Nintendo has the right to take action against you to stop it?