In May, ProconSP, a consumer watchdog group in Sao Paulo, Brazil, reached out to Nintendo. They sought clarification regarding messages Nintendo had sent to users concerning recent changes to their service rules, especially about the new End User License Agreement (EULA) for the Switch 2. This updated EULA contained unusually strict language. It appeared to grant Nintendo total control over its platform and even stipulated that users’ consoles could be rendered permanently unusable if they did not comply with certain rules. ProconSP immediately deemed several of these rules abusive and demanded an explanation from Nintendo. They were particularly troubled by provisions stating that Nintendo could block or cancel accounts for any reason, or even render their services or devices completely inoperable.
Now, ProconSP has officially ordered Nintendo to amend these rules. They argue that some parts of the agreement are plainly unfair under Brazilian law, as the arbitrary termination of services or subscriptions without just cause violates local consumer protection laws. ProconSP specifically highlighted concerns about Nintendo’s unilateral cancellation of services and the lack of obligation to justify subscription termination. They feel these rules in the new Switch 2 EULA would be unduly unfair to Brazilian consumers who purchase the new handheld. Since Nintendo lacks a physical presence in Brazil, it has retained a local law firm to represent it in this case. Nintendo has 20 days to respond to ProconSP with its answers and to state whether it will change the rules.
As the gaming industry continues to navigate through significant shifts, another major player is facing its own set of challenges. In a recent development, Microsoft’s Xbox division has undergone substantial changes, including layoffs and project cancellations across key studios such as The Initiative, ZeniMax Online, Rare, Turn 10, and Halo Studios (read the full story Microsoft May Be Attempting to Replace Humans With AI Agents). Carlos Mendoza delves into these internal transformations on July 4th, 2025, highlighting growing concerns among employees about the potential replacement of human workers with AI agents. This shift is raising eyebrows and sparking debates within the industry. Readers interested in understanding how this transition might shape the future of game development should definitely check out Carlos’s insightful piece. For those curious about the future of Marvel Rivals on the Nintendo Switch 2, be sure to check out our recent post by Ahmed Hassan titled “Nintendo Yet to Send Switch 2 Dev Kit to Marvel Rivals Team” (published July 4, 2025). The piece explores why the game is currently unavailable for the latest console and includes an update from Guangyun Chen on their efforts to obtain the necessary development kit. With details about potential technical limitations and the path forward, this article offers insights into what fans can expect in the coming months. Click here to read more! Nintendo Yet to Send Switch 2 Dev Kit to Marvel Rivals Team As we dive into the legal intricacies surrounding Nintendo’s recent policy changes, it’s also worth celebrating the company’s broader cultural impact. In a separate but equally exciting development, Bruno Pferd discusses how “Super Mario Bros. The Movie” has not only set a new box office record but is now paving the way for an even more diverse and expansive audience in its upcoming sequel (read more here). Published on July 4, 2025, this article highlights Mr. Shigeru Miyamoto’s vision for the future of Nintendo’s film endeavors. Be sure to check out Super Mario Bros. 2 to be Interesting and Broaden Audience to learn how the beloved franchise is set to captivate new fans around the world.