folks thought the same for the Genesis and Atari flashbacks but some tinkering found they were using FOSS emulation. IMO FOSS projects should start charging companies that use their products dependent on scale.
I assume most FOSS emulators have a non-commercial license, so if a company is using it to make money they are already violating the law, but who is gonna go after Nintendo for that?
If they had that, they'd no longer be FOSS and instead "source available" and half the community will raise the pitch forks. Best FOSS licence to protect against this sort of thing is AGPL because it's toxic for corporations. But even that could be used in this case if they had the source on the same computer imo (IANAL though)