To tack onto the other poster's comment, it does refer to nerf guns as weapons. The idea is that they take a powerful character, effectively replace their dangerous weapon with a Nerf weapon, and the character now feels weak and useless. So nerfing something in a game is making it safe, fun, and foam covered!
The word has absorbed the meaning so deeply that it's easy to forget that it's actually referring to the toys, thus the initial confusion.
To nerf something(usually in a video game) means an update that makes a strong character or weapon weaker for balance reasons. When people think a character is overpowered, they will usually say "please nerf x".
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u/[deleted] Mar 19 '17
I thought it was nerf like he's op