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Well, let's say it, if your console gets banned, we all know what you did with it (you modded your console and playing video game for free on it. Let's not lie about it, that's the main reason we all mod our consoles).Actually, how can it not be anti-consumer?
I am not saying it is fair, or it is not fair, or legal or illegal.
But if we consider the act of "banning the consumer's console when the consumer does something something the business doesn't like", you can consider it either:
1. anti-consumer: benefits the business in spite of the consumer
2. pro-consumer: benefits the consumer.
I believe it is quite obvious it classifies as (1.), and not as (2.).
Preventing you from playing online because you are shamelessly playing their game without paying them is not "anti-consumer", it's just common sense.
Let's say you create a video game, you put year(s) of effort on it, you want to sell it online for 20$, and peoples start cracking it, playing it for free, and cheating online, ruining the experience of everyone who actually paid for the game, what would you do?
You would let them keep on because "banning them would be anti-consumer"? I doubt it.
And as I said. Nintendo banning people who bought a used game because of the one who sold them the used game is NOT Nintendo's fault. Nintendo have an automated system that makes no distinction between the victims (those who bought the used game and got banned) and those who legit mod their consoles. It's true, it's really sad, maybe Nintendo should do something about it, but the main culprit is the MIG Switch.