The Digital Content Directive (Directive 2019/770) requires traders to provide updates to keep digital content, like games, in conformity with the contract. However, suppose a user breaches the terms of service. In that case, Nintendo may terminate the contract, which could result in the suspension of updates. This is likely legal, as service agreements commonly permit such actions, and the Unfair Contract Terms Directive (Directive 93/13/EEC) allows termination if the terms are fair. For physical games, updates might be seen as part of the good. Still, in practice, they're delivered via services, complicating the issue.
It seems likely that regulators could challenge Nintendo if updates are essential for game functionality, arguing consumers have a right to them. However, the ban affects only the console's online access, not the game itself. Since you can access updates on another console, your ability to receive updates isn't completely blocked, which would align with consumer protection laws, such as the Digital Content Directive (2019/770) and the Sale of Goods Directive (2019/771).
From my understanding, there is no infringement occurring within the existing directives.