They’re probably talking about the BMG rootkit from the early 2000’s. Basically, when you inserted a Sony CD into your computer, it would automatically and silently install a rootkit on your PC, which introduced a backdoor on your PC that was being actively exploited. It was also notoriously difficult to remove, as it would reinstall itself even if you deleted every visible trace of it (and improperly installing it could disable access to your CD drive entirely.)
Then when shit hit the fan and Sony was making headlines for it, they released a “fix” for it. The fix didn’t actually remove the rootkit, and simply hid files with specific names (the rootkit files) from the users. This only introduced another vulnerability, where hackers could just name any virus the same as the rootkit, and it would automatically be hidden.
It led to several very large lawsuits and state investigations. Sony was raked over the coals by multiple state attorneys general, and the FTC even published warnings urging consumers not to buy Sony CDs.
All in the name of DRM. The rootkit was initially meant to stop you from ripping and copying the CD. Oh, and the rootkit contained sections of improperly credited open source code. So Sony stole from OSS programmers while claiming that they were trying to prevent IP theft.
Yeah, N64 speedrunners even went as far as replacing their aging analog sticks with machined steel sticks. Because as the console ages, so do the controllers. And stick drift became a major problem for speed runners who used genuine consoles. There was even a case where an aging controller led to the discovery of a new glitch, when a speedrunner’s NES controller had gotten so old that it allowed him to press button combos that wouldn’t have been possible with a new controller. And that button combo allowed him to perform glitches that would have been otherwise impossible on a console.
The larger issue is accessibility. If speed running requires a genuine console, it severely limits the number of people who can afford to participate. There would be a big financial barrier just to buy the console and game(s), and since no new consoles are being made it will inevitably lead to the death of speedruns as consoles die out and nobody can continue playing.
One of the original goals of emulation was data preservation, since it quickly became evident that game companies wouldn’t bother preserving their own games. And as consoles age, that will only become more and more important. I personally have backups of all of my legitimately purchased Nintendo games. But that’s only because I enjoy data hoarding and have a NAS that can actually store all of it. Not everyone has that luxury, and it means that (again) there will be a big financial barrier to anyone wanting to be able to play the games that they legally purchased and have the right to play.