This is kind of funny, because Microsoft reportedly tried to buy Nintendo back in the early 2000s. Nintendo thought that MS was joking with them when they heard about it.
Their last three years were literally their most profitable in the company's history. They had a profit of over $4 billion in fiscal 2021. Not revenue; profit. They haven't "lost money" (i.e. had a net negative year) in almost a decade, according to their financial reports.
Well, first of all, what they did wasn't illegal. And more to the point, they haven't done that for years now. They abandoned their (admittedly dumb) Youtube policy of banning anyone from doing anything with Nintendo games unless they were part of the Creators program in 2018. Their only restriction now is that you can't post any game content before that game's release and you can't say that your videos are approved by Nintendo (unless they actually are), which are both perfectly understandable provisos; other than that, you are 100% free to make Youtube videos that use Nintendo games/IPs.
Violating Fair Use to falsely claim copyright should be criminal.