Unlike physical cartridges, a digital, emulated copy of FireRed has no resale or collector's value. The lack of physical copies for virtual console games also means each copy sold costs Nintendo nothing beyond the initial emulator development cost, which would be minuscule on a per-game basis.

Considering those factors, and the Switch having a higher install base than prior systems (over ten times Wii U unit sales), maintaining the Wii U and 3DS price points is the most reasonable means for Nintendo to monetize their back catalogue in a way that makes piracy less enticing for many people: $3 per GB, $4 per GBC, $5 per NES, $7-8 per GBA, $8 per SNES, $10 per N64/DS, and $20 per Wii.

Given that each emulated console only requires that a Switch emulator be developed for it once (something Nintendo has already done for NSO) to support hundreds of paid titles, there's no need to increase prices when the games will sell several times more than they had any chance to on the Wii U.

Given how many games NSO includes, they could continue offering them that way for people who prefer renting their library. Consumers want meaningful options; pricing a GBA game at $20 is not that.

Probably not from indie developers

Do you work for the billion dollar company? Weird fucking take you have portraying them as a victim

You were right in your first comment, but this is plainly false. Not pirating, mind, but making copies of what you already own is legal, at least in US and most of Europe.