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.
they go down… on devices that dont sell well. its why systems like the gamecube and wiiu had players choice or nintendo select prints. for example, DK Tropical Freeze was 50$ on the WiiU, 20$ as a Nintendo Selects. the launch price of the game on the Switch was 60$. They do it because they can get away with it because of the common sentiment that the WiiU had no games.
nintendo is generosity is inversely related to the devices sucess.