TheRealTalker
Cappy
They are probably using Sony equipment, studios, etc... (which is what I assume is the Sony financing bit beyond marketing and distribution).I'd heard for a while Nintendo was keen on live action, but I'd always heard with Universal.
Nintendo is footing more than half the bill, they'll have almost full creative control here. Sony is basically just distributing.
It isn't the first time Sony collabs with others to fund projects. Most of their TV shows that they make they get streaming companies to pay some of the bills like with The Boys, or Cobra Kai, etc...