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Nintendo's kind of getting into dicey territory when it comes to public relations, I think. Mostly because I doubt they'll just focus on people downloading Switch games.
When you go after those that host the pirated games, sell the pirated games, etc., some people might get irritated and offended on principle, but at the end of the day it's a minor inconvenience for most.
But when you go after the people downloading the games for personal use... then you have a larger group of people who will look more closely at the discontinuation of the NES and SNES Classic, the death of the Virtual Console, and the meager offerings of Nintendo Switch Online. And probably get pretty upset.
You know what really cut down on the downloading and streaming of pirated movies?
Netflix. Before all its competitors sprouted up and took away its content, I mean.
Sure, there's some who won't pay money for these games no matter what. But for a larger group, if they would make the downloading convenient and reasonably priced, Nintendo would likely find a nice source of revenue.