Not surprised. If they don’t protect their IP, then they don’t have a ground to stand on. It’s basic IP law.
That's trademarks
[1] https://en.wikipedia.org/wiki/Intellectual_property#:~:text=...
While it may seem "unfair", it's entirely within their rights to do so.
Also, whether a crime is being committed at the same time as displaying a trademark shouldn't matter unless the trademark is actually being violated. Since trademark today is effectively being enforced by multinational corporations scratching each others backs, we may never actually know whether Nintendo's lawyers could convince a judge or jury.