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What are your views on emulation?
> I like it!

What benefits does emulation provide?
> Preserve games, making vintage games more accessible (save states, game speed up) or enhance graphics.

Does it impact game sales?
> If you buy the games from PSN, eShop or XBL then sure!
If not then maybe. If you play a ROM of Final Fantasy 6 on a custom fanmade emulator instead of buying it then it impacts sales negatively... at least if you were willing to pay for it if you had no other means to play it. If you wouldn't have played it if you had to pay for it then not. If you then go to the store to buy Final Fantasy 15 because you liked 6 then it will impact sales positively. Who knows...

How do game creators feel about this?
> Given that it takes 10 to 15 years to emulate the plattform a game runs on i don't think the "creators" care much about it because they already got payed for their work. IP holders on the other side may not like it or don't care... who knows... :)

What are the legalities and ethics around emulation?
> Emulators are legal as long as no copyright protected code is being used. If you play your original games on the emulator then everything is fine. If you download or provide game ROMs then this is illegal... depending on the country you live in. Well in most countries it is illegal at least.

What percentage of those that use emulators are engaged in privacy?
> Privacy? Piracy? Something between 0 and 100%... it's a grey area so who knows...

Are there sources of data to support this?
> Have a look at digital sales revenues in the financial reports of the IP holders.