Ouch. Of course the source code is still out there, but the more important question is whether this will have a chilling effect on other emulator projects. US$2.4M is a significant sum of money and a clear signal that Nintendo is willing to go after the people behind these projects.
I expect a great deal of discussion about the legality of emulation to ensue, but the fact remains that not actually going to trial also means there is no legal precedent set either way…
But yes, again, this is why we can’t have nice things, like playing Breath of the Wild at 4K with immersive rendering. Or play the games from a previous console generation without paying twice for them. Or, you know, have a backwards-compatible console.
Oh, wait, there is one.
Update: and now Citra, the 3DS emulator, is gone too. Considering the platform is dead and Nintendo closed the e-shop last year, this is a bit sadder.