As far as I know emulators are nothing illegal, however the game ROM's are copyrighted and downloading them therefore is probably still considered illegal. The rights to the respective games are still held by the companies that were producing the earlier consoles, like Nintendo that's still in business, and they hang on to their old games as sometimes they re-release them as part of the new games, such as the classic Donkey Kong in Donkey Kong 64's gaming machine.
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