I wasn't able to find their developer policy, but I'd assume this is a pretty cut and dry case of violating the policies he agreed to when he submitted the game

I wasn't able to find their developer policy, but I'd assume this is a pretty cut and dry case of violating the policies he agreed to when he submitted the game for review. Nintendo is very protective of running pirated or unofficial games, ever since the late 80's, when knock-off games were rampant and leading up to today with DRM. I'm sure it's against their policies to sell a game where users are allowed to write arbitrary games/code without Nintendo approval. It would be different if the game was sold as a Ruby interpreter, because then they could at least verify it's capabilities and make an informed judgement about whether they should allow it.