Nintendo gave up on doing what was "morally correct" ages ago. That doesn't make anyone else's moral failing acceptable, but comparatively Nintendo's sins are far greater and they've never faced consequences that came remotely close to what they're putting Gary Bowser through.
more people need to just read the "history" section of Nintendo's Wikipedia page. because that "ages ago" is 140 years ago, when the company was founded, by being the only {morally,legally} bankrupt enough people willing to sell their wares to Yakuza-run casinos.
to be fair, they're not unique in this space. but the perception of them as "the family-friendly gaming company" has always been some very big amount of nonsense.
> and they've never faced consequences that came remotely close to what they're putting Gary Bowser through.
His own actions and the legal system are why he is where he is today. Nintendo isn’t putting him anything, unless you now think that Nintendo controls legal decisions that are handed down.