
SBG: "Okay, publishers. You have fans. (Congratulations on that, by the way!) You’re in the game business, and that’s because you like games. You also genuinely want to make your fans happy. But you’re a business, and sometimes it’s just not feasible to localize games for the West. Your fans want them anyway, and they’ll keep pestering you until the end of time about them. You know the ones. Sega, you have Valkyria Chronicles 3, among others. Namco Bandai, you have a smattering of Tales titles. Nintendo, you… well, you have a pile of ‘em: Xenoblade, The Last Story, Pandora’s Tower and, of course, Mother 3. Every publisher has a game like this that the most rabid followers just won’t shut up about.
We get it, though: you’ve done the math, and you just don’t think it would be profitable. The system’s declining. Previous games didn’t sell so well. Whatever the reasoning, you’ve figured it out. You’re never going to get past it with that answer, though. So give fans a shot to prove you wrong."

Two-day event includes exclusive reveals, trailers and playable games on show floor.

The rejection is non-final (and even when such rejections are labeled as “final”, the process is far from over, given that there can be, at minimum, an appeal to the Federal Circuit).
Good, as they should! A game mechanic like that shouldn't be locked behind a patent, and Nintendo didn't invent it either.
Nintendo wants to keep wasting money on bullshit lawsuits, real smart in this economy. They should put that money aside for other game projects. On the other hand, I don't care if they waste it all either, and they are screwed in the future maybe that will teach them a lesson.

CEO Haruki Satomi said Sega will "take these lessons into account for future initiatives"