real question should be, why is lmthere licensing for a disc. perhaps that's the problem in that it's just a racket
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It's even worse today than it was 20-30 years ago. Some of the stuff shown in this video would get sued into oblivion if they tried to release it today.
What do you mean "may be on thin ice"? Pretty sure these discs literally have not been possible to make since the Xbox 360 and PS3 generation.
It's wordplay, see the capital letters? The company that pressed discs like Action Replay is called Thin Ice.
F4mi is an excellent video essayist about homebrew, piracy, and tech oddities from the 2000s. Strongly recommend her channel. The vid that put her on the map was tracking down and interviewing the person who created the music for the Wii's Homebrew Channel.
The answer to your question is about 8m30s into the video. I've added my own description to the post which also answers your question.