CVG is citing unnamed sources and reporting that the new Ouya console, which runs Android, will come equipped with emulators for the old school Nintendo systems like the Super Nintendo and the original Nintendo Entertainment System, at launch.
Emulators are nothing new in terms of Android or iOS devices. They often pop up in various app stores, often disguised as other programs, but they're usually pulled once their true nature is discovered. While not illegal themselves, they run ROMS, which are technically illegal to possess and run, provided the ROM owner has an original copy of the game. However, companies like Nintendo and Sega don't expend as many legal resources going after sites that provide ROMS for older consoles as the RIAA is with music sites MP3s.
It's emulators for current systems start popping up that things turn serious. For example, in 1999 there was a PlayStation emulator called "Bleem!" While Sony never won any legal action against the pair behind the emulator, the company eventually went out of business.
It's dubtful the developers behind the Ouya would be involved in such a legal grey area so soon, however, the rumors persist. According to CVG's sources, while the apps are close to completion they are not legal.
No one behind the future system has confirmed the rumors, so we'll have to wait and see when the console ships to Kickstarter backers later this week.
UPDATE: When asked about emulators, a spokesperson for Ouya gave Game Informer the following statement:
"OUYA will accept emulators as long as they adhere to our content guidelines and are not submitted with any games."
As far as content guidelines go, they're not exactly stringent. As GI describes, "under the entry for 'Illegal Activity,' the guide simply states 'Use good judgment and do not break the law.'"
We've reached out to Nintendo to see if they're considering any options.