this post was submitted on 11 Jan 2024
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It's Valve's IP and assets being utilized at the end of the day sadly, and looking at the last time they got involved with Nintendo, as well as Nintendo's hatred towards emulation and reverse engineering, I wouldn't be surprised if Valve's legal team considered the options before issuing a C&D to the two N64 fan projects.
From Nintendo's perspective these are both unlicensed homebrew, implicitly allowed by the IP owner Valve... who they were in legal correspondence to fairly recently. It would be very unwise for Valve to let this slide given the circumstances, although admittedly it is not a great outcome at all
The last time you're referring to was Valve directly distributing the project in question. That is not the reality here, nor is there any implication that Valve allows it. If Valve never issued this takedown, there'd be no reason to even believe Valve knew of this infringement nor that they were so intimately familiar with it to know Nintendo's IP was also being infringed upon.