
I’m not sure they can in this instance. The reason they could sue the Switch emulator team was because they were using a proprietary encryption key.
I don’t think the NES had that, and as long as you own the game, emulation is legal.
Also, this might be considered transformative use since the devs have to create the 3D profile by hand.

Because that would be good for the consumer. They make more money on digital only, you don’t actually own the product, and you can’t resell it.
It’s a corporation’s wet dream.
The best way to handle it would be to keep the core game files on a physical card that loads into RAM, and download the assets to the local drive.
Microsoft still has a good reputation?