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I think something that is often overlooked is that emulation does not neccessissarily mean piracy.
I've emulated games before, just because I was too lazy dig my old consoles out and play the actual copys I own. Thats not a lost sale. I spent my money on these games already.

Also seeing the success of rereleases/remasters and digital legacy releases (virtual console, Ps1 and 2 on psn) I'd say the industry is fine.