It is irrelevant whether or not someone profits from the distribution of an emulator. Substantial damages are caused to Nintendo and its licensees. 'Distribution of an emulator developed to play illegally copied Nintendo software hurts Nintendo's goodwill, the millions of dollars invested in research & development and marketing by Nintendo and its licensees. Such emulators have the potential to significantly damage a worldwide entertainment software industry which generates over $15 billion annually, and tens of thousands of jobs,' it says.
As is the case with any business or industry, when its products become available for free, the revenue stream supporting that industry is threatened. 'The introduction of emulators created to play illegally copied Nintendo software represents the greatest threat to date to the intellectual property rights of video game developers.