You'll never get around piracy.
Even with proprietary media you can just hack the console to dump images with the consoles own drive. Almost every media format proprietary or otherwise is dumped within the first week of introduction long before the ability to execute those images on the original hardware is discovered.
Pirating has less to do with what kind of media you are using and having a ROM and more to do with being able to load and execute it on the console without extensive or impractical modification.
I like to use HDCP over HDMI as an example. The whole system is encrypted, but at the end of the chain inside the display is a RGB LVDS signal driving raw pixel data to the panel controller where you can still tap the raw uncompressed unencrypted data and encode it back to h.264 or whatever.
Nintendo doesn't have to worry about piracy. Nintendo and retro and collecting is such a HUGE thing right now. Just look at second hand prices for many Nintendo games as old as NES and as new as Wii U. People pay through the nose for original complete copies. And most of Nintendo's market is either these hardcore Nintendo fanatics that want sealed original black label copies in triplicate of everything Nintendo makes from first party Wii U titles to amiibos, and casual families who wouldn't know how to hack a console to pirate games anyway - non tech savvy mothers who care about things like warranties and service support.
The majority of people who pirate are people who are OCD hoarders who want everything if it's free but don't have the means or desire to pay for originals in the first place.
The whole piracy thing has been overblown by greed in the industry and unrealistic predictions and expections of what a publisher expects or thinks they deserve for a release. Publishers like Activition and EA especially who are run by people who believe in unsustainable business practices relying on record breaking sales indefinitely year after year.
We see this all the time. "Oh Call of Duty only sold 8 million copies in 2 minutes. Last month's release sold 8.01 million copies in the same time, we wanted 20 million copies. PANIC! FAILURE! MUST BE PIRACY!" You cannot break sales records forever, least of all in the stale tired worn out over produced market you yourself created. The market gets saturated eventually. There are only a finite number of people on the planet to buy your product for example. Expecting to double sales every iterration from 10 million to 20 million to ...... 500 billion units shipped... yeah that is never going to happen. The gravy train is going to stop eventually and reach a static value at the market saturation point.
Piracy is a scapegoat invented for and motivated by the desire to constantly increase revenue streams without end. The end goal isn't to "stop piracy". It's to remove your freedom of choice and private property and consumer rights. It's to completely lock down and monopolize control of the property you purchased for maximum monetization by publishers who want to inundate you with their shovelware and vendor locked in subscription models in every aspect of your life. Piracy is just a boogieman to force feed the public and legislators into accepting the crippling and invasive DRM technology and anti consumer business practices used to achieve that agenda.
The number of people with the tech savvy and desire to hack their console is an extreme minority. I'd wager over 95% of average consumers still care about things like warranties and rely on service centers to change the batteries in their remote controls and oil in their cars. These people aren't installing mod chips in their consoles and sitting in front of their PCs ripping ROMS all day.
Even with pirating it's doubtful that Nintendo would have a problem with selling out of anything they make no matter how many they produce with the current ferver. Anything first party Nintendo prints money. You can download the N64 ROM of Majora's Mask and practically play it in a browser on a $50 PC these days. Yet this didn't stop the 3DS re-release of the game, the limited edition N3DS XL console, the limited skull kid figure box set , and the collector edition hardcover guide books (that aren't even Nintendo) from selling out world wide in mere seconds while 100s of thousands of angry customers walked away empty handed or fell victim to ebay scalpers.
Nintendo's problem isn't piracy. Nintendo's ONLY freakin concern right now should be making enough stuff to sell when 100s of thousands of customers who missed a 3 second preorder window at 2 AM are camping out and waiting in line for 8+ hours in rain and snow to throw fistfulls of money at Nintendo but can't get the products they want.
It's gotten to the point that ebay resellers are even using bots to monopolize pre-orders for fucks sake. Please tell me again how piracy is hurting Nintendo more than Nintendo hurts itself?
