I don't see Andy's side at all.
The artwork is a copy, used for commercial purposes and without permission.
Copyright restricts copying. This isn't fair use. It isn't a parody or an even an homage – which can blur the line.
Not the same thing at all. Look closer, like at the tie. They didn't just reduce the color palette and resolution. He describes the process of creating it:
> I tried to draw it myself, but if you've ever attempted pixel art, you know how demanding it is. After several failed attempts, I asked a talented friend to do it.