Think of it like this.
Nintendo have released a successful family friendly semi-rebrand of their Donkey Kong IP. It's become very popular, and parents will buy the silly monkey smashing game for their kids and maybe play it themselves because it's fun. All fits within Nintendo's brand, and they're making profits.
Now if someone, using the 3D models of the game, and the multitude of tools nowadays to do it competently decide they want to make a foot fetish game with Pauline, with her tied up and you have to use a multitude of things to tickle/lick/who knows what her feet. They do it very well, and are creative enough to keep it looking within the confines of the game's world.
Game gets all over social media, kids start downloading it, then it makes the news because the new Donkey Kong Foot Fetish game corrupting youth or whatever other drama it can escalate into.
Parents now associate Nintendo with a perverted game that has nothing to do with them, but it doesn't matter because it's their brand. Parents stop buying their kids Nintendo shit, and forever associate Donkey Kong with a foot fetish that was exposed to their kid.
Nintendo lose money, and reputation.
I know it seems extreme but things like that can escalate in today's world. Nintendo (and any other company with strong family branding) understandably fear it and want to keep it under control, as it could so easily go off the rails if they let it.
