Just gonna chime in a second about the LA Noire thing. The case for La Noire is a little special because it tells you right on the cover that you are required to have an internet connection and sd card, which implies downloading will have to be done upon usage of the cartridge. This only furthers the argument that upon tampering with your device or the cdn, you are relinquishing your right via the user agreement to downloads, updating, etc.
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How are they incompetent? It is only because of Nvidia we have all of these hacks. Nintendo fucked over hackers this time around and these bans are further proof of that.More like continuing their past incompetence.