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Yes, that's one of the coolest things, it's very handy actually, although for example for some games like Mario Kart Live you can't take screenshots unfortunately.

I didn't know that. I guess it's to prevent people to share other peoples usernames or something?

I never really understood the reason, but it was strange, nothing bad is done with screen capture or recording, even that is advertising, the only thing that could be, is that for being a game that came out on the 35th anniversary of Super Mario Bros, they wanted to take it as something very exclusive, even limiting those aspects.