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.
I think the reason is Nintendo views themselves as a toy company, not a video game or entertainment company. They don’t do sales because that’s not a thing for toys, you sell the production run and move on. You aggressively attack anyone using your toys in media, because it makes them more accessible without buying them. It’s why their consoles are weird, have bright colors. It’s also why there games are generally better, as you can’t release a half finished toy and update it later.