Nintendo's recent decisions when it comes to community management have left many fans disappointed and upset. Granted, Nintendo has always been against things like ROMs and emulation, but the company made those calls during normal times. With the world currently working through a pandemic, many fans hoped that the company would develop a better mindset when it comes to fans trying to work with the times.
Shutting down tournaments for using ROM mods to run remotely doesn't reflect well on Nintendo's image. In effect, this sent the message that Nintendo would rather fans break social distancing guidelines -- or not play at all -- than emulate a game that's no longer on the store shelves. Even though Nintendo is known for its eagerness to innovate, the company seems oddly apprehensive when it comes to following the innovations of other developers, which has left many looking for alternatives.
More recently, Nintendo shut down the live stream of a Splatoon 2 tournament after the teams voiced their support for the Super Smash Bros. Melee fanbase by adding references to the game in their team names. Even though a case could be made for shutting down the Melee tournament, canceling a stream over references to Melee feels incredibly petty, especially from a big company like Nintendo. Nintendo needs to learn when to turn its head away from minor incidents like this, especially during times like these.
There's a strong case to be made that Nintendo would benefit if it was more supportive of fan projects. Sega, for example, has shown with Sonic Mania that supporting the fan game community can lead to both profits and positive public opinion. Even during normal times, a company that supports fan creativity is seen in a better light than a company that doesn't.
However, there's another case to be made for Nintendo at least being more lenient right now. Under the current circumstances, things like holding tournaments is difficult. A nearly 20 year old game like Melee doesn't have its own online play, which makes the fan mod of the emulated version an appealing option for tournament hosts. If Nintendo is worried about a fan mod outclassing Smash Ultimate's online performance, then that should be an incentive to either hire the people who created the fan mod or to improve its own servers.
Any way for fans to continue to enjoy Melee's competitive scene while still being safe should've been a huge positive, and Nintendo actually had given the tournament its blessing until the tournament chose to use the fan mod. Nintendo should be grateful to fans who are continuing to express their love for the Super Smash Bros. series and commend them for doing so while staying safe. The company is likely trying to avoid setting a precedent by allowing one fan mod and not others. However, these are not normal times, and even if they were, examples like Sonic Mania exist still cast doubt on that ideology.
Nintendo needs to adapt to the times. Supporting fans who mod their titles could actually lead to profit rather than losses. It's also important to note that Nintendo hasn't shut down the multiplayer mod for Melee, and the U.S. federal court decision in Sony Computer Entertainment, Inc. v. Connectix Corp. seems to establish that emulation is not piracy or copyright infringement.
The company needs to make its expectation for fans clearer. If the Big House tournament organizers should have contacted Nintendo with their intention to use the multiplayer mod before formally announcing it, Nintendo needs to outline that. Perhaps the two could have worked out some kind of arrangement to "validate" that the participants all owned a legal copy of the game.
Whatever the case, Nintendo needs to change its views, at least for the time being. The backlash to shutting down these tournaments has fans upset and questioning their loyalty to the video game giant. Fans are trying to be safe during troubling times, and they shouldn't have to worry about Nintendo shutting down a way for them to have fun.