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It reads like they have their family held hostage.
This is a few days after they hired a lawyer. I'm guessing they were told they either spend a million dollars fighting this in court or shutdown their website.
Fighting in court probably wouldn't have got them very far, Nintendo would likely just keep going until Yuzu's LLC ran out of money. Even with $30k/mo in patreon donations, totalling around $2.5m since the switch release (assuming Yuzu devs didn't eat or pay bills), it's miniscule compared to Nintendo's $15B value and lawyer army on standby.
They probably also saw what Nintendo did to Gary Bowser (he's practically Nintendo's property now) and decided this is the safest way out without having their lives destroyed, while they still have some protection under the LLC
They settled for 2.4 million dollars
Damn seems you're right: https://www.gamesindustry.biz/nintendo-and-yuzu-developer-settle-lawsuit-for-24m
Piracy of content "owned" by companies who act in bad faith is not an option it is an obligation.
Nintendo, Sony, Disney, Amazon, Microsoft, Adobe, etc have all done their best to make the industries in which they operate significantly worse for both consumers and competitors.
Goodwill? What's that? Proceeds to party-poop themself to death.
Nintendo really seems to be tired of being loved by gamers. It's like they're trying to beat Blizzard on how quickly they can burn their fans into never touching them again.
Damn they finna do em like Bowser.
This is a huge shame. Both of these projects were exceptional preservation efforts.