Yeah, but that’s Nintendo getting something and doing very little for it. Not helping Sony could be a bonus.
Nintendo has generally been pretty weird when it comes to tournaments despite the extra exposure and marketing-while-doing-next-to-nothing. I can see Nintendo not wanting any even perceived association with bad faith types though linking Nintendo to sexual abusers who happen to play its games is tenuous at best. The company has very little control over who plays its games. Then again, Nintendo swerves hard when it didn’t need to. Recently, it took down a YouTuber channel hosting Nintendo music with thousands of copyright strikes. I guess, but maybe put the music online yourself? No? Alrighty.
That said, Nintendo could just want tighter control though that puts responsibility squarely on its shoulders. Having Evo or another host running a tournament gives Nintendo plausible deniability. Also, Evo was online only last year. If there’s a spike in COVID cases that are traced back to Evo, at least Nintendo’s name isn’t on there. Lots to consider here.