So, to speedily summarize things so we can get to juicy opinions, Nintendo has begun to Content ID Claim Let's play on youtube, removing monetization and instead sending ad revenue to their end.

Now my opinion is, this was a very bad move by them, considering how low their consumer goodwill was, and they're putting the jobs of many at risk. Had this been better times for Nintendo, I'd be less mindful, but at current this reeks of greed/desperation.

And I somehow doubt that Nintendo would be able to make a Let's play that feels as good as the community works, considering how bad most Nintendo video productions are, ranging from inane, corny, and downright padded they tend to be.

To further explain, I felt that Nintendo week was more camp than the 60s Batman and more often than not, explained things I knew and didn't care about, or simply went totally off the rails.

Nintendo Direct, especially when Iwata is on the scene, is perhaps the best example of how to stretch a video while boring all viewers. Just use a bloody translator and get to the point of how to play a game I don't even have interest in.

To summarize, I do feel this won't end well for Nintendo.

Already threw my hat in there.

I know several lets players who live off of youtube alone, and I know of several who I wish had monetization removed entirely. Not to drop names, but a certain Swede, for example.

I suppose my question would be, 'How would Nintendo pay the community back?'

Let me get this straight:

Nintendo making money off of Let's Play vids = greed/desperation

Other people (including other game publishers) making money off of Let's Play vids != greed/desperation

Am I understanding this correctly?

No, the focus quite simply isn't on the other publishers. We can shoot them later.

Bad news for some of the Let's Player.

Nintendo is now a partner of Youtube. They have claimed the
rights for videos with Nintendo content. If a video reaches a certain
amount of content they start advertising at the beginning or the end
of the video and also on the site.

Its their right but its a silly move because those videos are free advertising
for their games.

There's no guarantee that it's free advertising for the developers/publishers. I know a lot of people that look at some games and go 'I'll wait for a Let's Play instead of buying it.' simply because they don't want to pay the money. Nintendo didn't have them taken down, so it's not like these people can't put more up.

I do however, dislike the idea that a Let's Play uploader could make money off of these games. It's like a bit messed up in my eyes, but I feel like I'm in a minority about this.

I fear that should Nintendo attempt this on certain parties with vocal fandoms, their wrath will be felt, and the damages, permanent. I understand your viewpoint, but you have to understand that there are a large number of people who live off the money they make from Let's Play. And unless Nintendo is able to produce content that surpasses their content, I'm siding with the masses. My base economics philosophy is, 'The needs of the many, outweigh the needs of the few, or the one.'

This will hit both Nintendo and Let's Players. Let's Players will play other games, published by someone who's not a complete ass and Nintendo will suffer a severe PR hit and loose customers who chech Let's Plays before buying.
So, it's a lose - lose situation, a little worse for Nintendo.

Here's the thing, I can't put a movie up on youtube, I probably can't put an audiobook of my own making up on youtube (Me reading a book I didn't write), without it being taken down. How come video game Let's Plays are this sacred thing?

I can't entirely sympathize with the Let's Players to that degree. They're not making their money through parody, and Let's Plays aren't protected by anything. It really was only a matter of time before this happened. EA, Activision, Square, they do the same thing, how come Nintendo's suddenly taking flack for going the same route?

Edit: Oh, and before I forgot. The Developers make games using the funds from other games. Those funds vanish as more people watch Let's Plays instead of buying the game. The Developers lose money, stops making games, and what happens to the Let's Players? Probably loses their money because of a lack of games people recognize.

It'll make the catch 22 of the Wii-U even worse, I figure.

There are mostly two kinds of let's player - so small, they are barely making anything to begin with and so big, that even with the nintendo cut, they'll still be getting way more than they deserve and have shitloads of dough.

Well, they get away with it due to the massive gray area known as fair use. You could likely read a book for Youtube, and actually do fine, should the book--I really don't need to explain all this, do I?