Chances are you've read about Animal Crossing: Wild World's K.K. Slider and his comments regarding the free exchange of music. To sum it up, the canine musician in the game remarks that "Those industry fat cats try to put a price on my music, but it wants to be free." K.K. then gives players a free copy of his musical creations to listen to on demand. Somehow this little moment in the game expanded into the belief that Nintendo is condoning file sharing and piracy. I really think that people are reading too much into K.K.'s message.
K.K. Slider is a character in a video game. When he speaks, he speaks for himself and not for the company that created him. It is K.K. Slider's opinion that his music should be free. Nowhere have Nintendo's executives come forward and given their stamp of approval to copyright infringement. Also note that K.K. is speaking solely about his own music: "... industry fat cats try to put a price on my music..." There's no infringement in this instance because K.K. is giving away copies of his own music, something that he is allowed to do since he owns the copyright to his own creations. I believe that anyone looking to read between the lines for implied permission to swap Nintendo game ROMs or other such material is seeing what they want to see. This non-issue has been beaten to death long enough. Please, let's move on.