You do know the content inside Dreams is fan-made, right? it's not like Sony are actively making or advertising Mario based games. You may as say it's justified for Sony to sue Nintendo for letting Kratos and PaRappa Miis on Shared Content.
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We don't need any more of those ridiculous complaints about this. Dreams isn't even fan-made. It's an actual company trying to use Nintendo's IP without permission. The take down notice is completely just.