Every time someone suggests a large well-known license like this, there's a group of people that say it'll be too difficult, or too expensive, or the company is too defensive of their properties.
Yet I can go into any supermarket or department store and find at least 30 pieces of trash (eg, really cheap/poor quality toys, drink cups, pyjamas, toothbrushes, gift cards, etc.) with Mario and other Nintendo properties on them.
Nintendo is defensive against people reproducing their IP without a license. Of course they're going to try to shut you down if you share/sell their software without a license. Likewise, of course they are going to put their old content behind a subscription service... as that is the preferred way for a business to sell this type of product these days. It's good business (whether the customers like it or not). They certainly don't have a problem putting their properties on an assortment of other random products IF they get paid for it.
As long as both parties see the value in the relationship, then I have no doubt a deal could be done. Eg, the pinball company needs to convince them that the sales or exposure is high enough to justify the effort/risk, and the price needs to be such that the pinball company can still make money off it otherwise they won't bother doing it. With pinballs current popularity (sales and/or exposure for Nintendo) and high prices (compared to how little Stern would put into it, leaving room for licensing costs) I have no doubt they could come to some sort of agreement, if they wanted to.