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Alleged Switch modder takes on Nintendo’s legal might without a lawyer
(arstechnica.com)
This is a most excellent place for technology news and articles.
Maybe he doesn't want to spend 50k for a case he's losing anyway.
Not legal advice, but I believe denying all facts even the ones that are obviously true is setting himself up to pay costs for proving those facts, even if he was to win overall.
Nintendo are over litigious and have a reputation for weaponising copyright laws to shut down legitimate competition - but I suspect this might not be a good test case for challenging this.