"Go home, Embracer. You're Drunk"

Reportedly, Nintendo wouldn't give development kits for Switch 2 to Embracer Group because business volatility created too much risk of Nintendo's proprietary hardware being misplaced and leaked to the public or competitors. 

Nintendo essentially called Lars Wingefors incompetent, and it is hard to argue. Rumor is that subsidiaries (probably THQ Nordic) went back to Nintendo and were found to be more trust worthy.

It is very, very strange that a holding company would ask for development hardware. That would be akin to the Saudi Arabian public-funded Smile asking for development hardware instead of their own developer, SNK, asking for development hardware. 

It really makes a strong statement about how poorly run Embracer is. Lars Wingefors is basically a hospital administrator walking into an active operating room and demanding bags of anesthesic-grade narcotics. Meanwhile he is firing doctors and nurses, metaphorically, while asking for more anesthesic-grade narcotics. 

Nintendo, rightfully so, noticed that such behavior is indicative of a black market supply point. It is hard to deny that the behavior is suspicious. It is impossible to deny that it is incompetent.

The sustainability of a holding company that cannot seem to operate as a holding company is questionable. I wonder how long Embracer will exist if shareholders see the very real opportunity of spinning THQ Nordic off into it's own entity.