Billy tells TMZ ... he's satisfied and relieved with the recent resolution in his defamation case against the video game database ... nearly 6 years after they suggested he fabricated his Donkey Kong record through an emulation software, banned him, and wiped his scores from their site.

He tells us when the investigation and claims began in 2018, his first order of business was going back to the arcade and beating all the scores, which he did.

For some people this wasn't good enough, so now that his name is cleared, he is going to get back to what he enjoys doing, which is playing games, breaking records, attending events, and being an ambassador for competitive gaming.

Billy's happy his history has finally been restored -- but doesn't get why people were trying to rewrite it in the first place ... especially 'cause Twin Galaxies ain't as relevant as it used to be, according to him.

"The King of Kong: A Fistful of Quarters" was a 2007 documentary about competitive arcade gaming that followed Steve Wiebe attempting to take down Billy's high score record in Donkey Kong. Following the success of the documentary, he was told there was talk of a feature film with Tom Cruise and Jim Carrey being eyed as the lead.

As for now, Billy's taking the onslaught of movie offers his way seriously ... after putting them on the back burner while his defamation case raged on.

Billy's lead counsel, Anthony Ellrod tells TMZ... “This was an extremely hard fought case, and I am happy that the parties were ultimately able to resolve it. Cases like this where an individual’s credibility and veracity are at stake are very difficult to resolve short of trial. I credit the hard work of all parties and counsel in reaching a settlement.”