Dolphin has decided not to proceed with its launch on Steam after the platform removed the GameCube and Wii emulator due to Nintendo's request. The "Coming Soon" profile of Dolphin on Steam was taken down in May, and the emulator's developers have since consulted with lawyers to address the situation. In a recent statement, Dolphin's developers dispute Steam's reasoning behind the removal but ultimately accept Valve's final decision, regardless of its legality.
The main concern in this matter is that emulation software, such as Dolphin, operates in a legally uncertain realm. While on paper, this type of software appears to be completely lawful, it is often associated with illegal game piracy. However, due to limited financial resources, Dolphin and other emulators are unable to endure legal pressure from major corporations like Nintendo. Conversely, Nintendo prefers that emulators like Dolphin cease to exist, but refrains from pursuing legal action due to the potential weakness of their argument and the negative backlash it would generate within gaming communities.
Dolphin, Steam, and Nintendo found themselves in a conflict when Dolphin's developers revealed plans to release the emulator on Steam. The prospect of launching the emulator directly through Big Picture Mode and on the Steam Deck motivated Dolphin's developers to pursue this course of action. In response to this development, Valve promptly contacted Nintendo, who requested the removal of the emulator. Valve complied with Nintendo's request, but it is important to note that Nintendo has not taken any legal action or issued a DMCA against either Steam or Dolphin regarding this matter.
Following Valve's decision to remove Dolphin from Steam, the Dolphin team initially declared that the development of the Steam version was "indefinitely postponed." However, they have since taken the opportunity to provide a more detailed response. Dolphin clarified the events that transpired in May, refuted any claims of copyright infringement by Nintendo, and reaffirmed their commitment to continuing the development of Dolphin, including the implementation of features intended for the Steam release.
However, Dolphin will not be pursuing the release of the emulator on Steam in the future. The Dolphin team has explicitly stated that they are abandoning their efforts to bring Dolphin to Steam. This is because launching Dolphin on Steam requires Nintendo's approval, which is highly unlikely considering Nintendo's strong opposition to emulation.
In theory, Valve could change their stance and approve the release of Dolphin regardless of Nintendo's views. They could conduct their own research, come to the same conclusions as the Dolphin team, and prioritize the protection of developers like them over complying with Nintendo's legal threats. However, this scenario is highly unlikely. Valve would probably prefer to maintain a good relationship with Nintendo and avoid any controversies surrounding emulation on Steam. Nevertheless, Dolphin will still be available, just not directly on Steam.