Super Smash Bros. Melee fans have a new reason to be mad at Nintendo as one of their biggest events was given the axe. The Big House is one of the biggest and longest-running Melee tournaments in the country, and while the world is currently suffering from the COVID-19 pandemic, they were determined to continue on with it by holding the tournament online. One slight issue with that is Melee is GameCube title, which would mean players would have to use a ROM hack of the game to play. Specifically, they were going to be using Slippi Online, which uses the code to allow online competition. Nintendo caught wind of this and sent the organizers a Cease and Desist order, putting the kibosh on the tourney. After fan outrage swept Twitter, the company sent a statement to Polygon.
Nintendo appreciates the love and dedication the fighting game community has for the Super Smash Bros. series. We have partnered with numerous Super Smash Bros. tournaments in the past and have hosted our own online and offline tournaments for the game, and we plan to continue that support in the future. Unfortunately, the upcoming Big House tournament announced plans to host an online tournament for Super Smash Bros. Melee that requires use of illegally copied versions of the game in conjunction with a mod called "Slippi" during their online event. Nintendo therefore contacted the tournament organizers to ask them to stop. They refused, leaving Nintendo no choice but to step in to protect its intellectual property and brands. Nintendo cannot condone or allow piracy of its intellectual property.
The statement is a little misleading. Nintendo has supported a few in the past, but pretty much all of them have not been for cash or prizes beyond a trophy and some pride. We're willing to bet had this not had a cash value attached to it and been a part of such a big tourney, the company probably wouldn't have cared. But the action is at least consistent with Nintendo's frequent legal action against people using their software in ways they didn't intend.
As a side note, you should read our opinion piece about why Nintendo Should Support a Smash Bros. Esports, But Won't.