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They aren’t burning fossil fuels. They’re burning CHOOH2, which is the product of a genetically engineered plant.
Everything else has already been addressed by others. It’s a dystopia. Public transit exists in universe, but it’s very dangerous (as is the rest of the city). The corporate solution is to upsell you cars.
On the Nintendo page for it, it says the motion controlled games require a joycon, but those games are disabled for online play. Maybe there will be an option to disable them for local play too?