Pompoko, sometimes subtitled “The Raccoon War.”

That scene is among the least zany things that happen in it. You should check it out; it is absolutely worth a watch. Especially if you’re into Japanese mythology and yōkai. So in that vein, I’m going to throw down some nerd trivia, now.

Yes, those raccoons (tanuki, actually) were attacking people with their balls. This is consistent with Japanese folklore.

The tanuki are Japanese racoon dogs, are traditionally tricksters, and are said to have shapeshifting powers. Mario’s raccoon and “tanooki” suit (arguably misspelled in the English translation) is based on this:

This includes the ability to turn into a statue…

…which is something that the tanuki also do in the movie, or attempt to do, with varying success:

Note also how they use their, er, sacks to glide. Does that remind you of anything?

You’ll never look at him the same way ever again.