Nintendo, while aggressively litigious, do so to maintain the value and exclusivity of their IP.
Their games also never go on sale, and all sell really well over time, unlike many releases from other publishers.
The result is that Nintendo are able to release a solid cadence of high quality, first party games free of other forms of aggressive monetisation, maintaining the value of the games as art.
Yeah it seems like if a kid says “It’s a me Mario” while playing on a playground some Nintendo lawyer is going to be there to smack their family down with a 30 million dollar lawsuit.