| Yeah old news...
Not exactly a NES cover band, but check out Horse the Band.
In other old news some people figured out how to reprogram (or something...I dont know computer crap) gameboys and turn them into musical instruments. Beck got wind of it and did it, made an EP called Gameboy Variations, pretty sure it remixes of some of his songs (but they could be new, I'm not too familiar with Beck) played on a mod'ed Gameboy.
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Destroyer
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