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Copyright lawsuits can be tricky and to me Nintendo and TPC decided to play safe and avoid risks. He clearly doesn't have a case in the US (he made some baseless accusations, like claiming that they turned his likeness into a monster sporting Nazi and occult symbolism), but we don't know how things would turn out under Japanese law.

Anyway, Ubisoft did something similar with their Gods & Monsters project after Monster Energy sued them for using the word "Monster". It's a preposterous and absurd claim, and any sound-minded judge would decide in favor of Ubi, but they decided to play safe and use the horrendous "Immortals Feny Rising" name.