Is this bad? Am I misunderstanding? What financial damage does this do when Nintendo no longer manufacturers this console or actively developers for it and hasn't for years, or a decade in the N64/GameCube's case?
You might be missing the concept of "face" [0]. This is only bad in that it causes Nintendo to lose face, and Nintendo hates losing face. For example, examine Wikipedia; Nintendo's page about legal disputes [1] is whitewashed to reword all of Nintendo's abuses towards Free Software and the public domain as "protection" of Nintendo's "property". Face allows Nintendo to take their holier-than-thou attitude. It is why t…
(It's an Asian concept that might be grossly explained to Westerners as social reputation or honor.)