In October 2023, the narrative consulting firm Sweet Baby Inc. began receiving negative attention from websites like the forum Kiwi Farms for its mission statement and aggressive manner of "diversifying and enriching the video games industry", where one user described their work on Alan Wake II (AWII) as "possibly one of the biggest scandals in gaming history". This came to a head in January 2024, when a Steam Curator created a list of known games they worked on, citing Sweet Baby's own resume on their website and in-game credits to qualify for the list. While the curator initially expressed that it was not intended to try and "kill" Sweet Baby "or even convince people to not buy any game that they've worked on", it gradually built up a conservative userbase encouraging players to avoid said games due to the studio promoting a "woke agenda".

This group received increased attention the next month after two Sweet Baby employees, Chris Kindred and Maya Felix Kramer, complained about the list on Twitter, with Kindred asking users to "report the fuck out of this group" for allegedly violating Steam's Online Conduct for discussion, while Kramer questioned why the list was up at all, claiming "any game at all" could be added. However, the list had aforesaid criteria, and Steam does not have rules restricting how users curate lists or write review blurbs since they are user-made and intended to inform and cater to specific topics/audiences, with Steam's site stating that curators have no obligation to add games sent to them by developers, or to play/review games for them to be on a list to begin with. What then happened was an example of the Streisand effect, where several users instead reported Kindred for violating Twitter's terms of service for encouraging targeted harassment, leading to their account being limited for one week, and the increased attention causing more users to follow the list. The matter was also exacerbated after it was noted that Kramer was previously associated with Zoë Quinn, a developer who was a prominent figure in the 2014 #Gamergate movement, where they were accused of performing a DDoS attack on the site of startup charity organizer The Fine Young Capitalists, based on tweets they made allegedly claiming responsibility. The list gained over 210,000 followers in under a month, and a related Discord server gained almost 2,000 members. After multiple reports, Steam Support while in talks with the curator decided to keep the list up, but its forums were mostly purged and locked as of March 2024. The curator later decided to start a separate website to expand the list.

Mainstream gaming outlets reported the controversy surrounding Sweet Baby as "conservative conspiracy theories", with several noting that users blamed them for Suicide Squad: Kill the Justice League's (SS:KtJL) mixed reception rather than developer Rocksteady, and accused them of forcing Remedy Entertainment to change AWII/Quantum Break character Saga Anderson from white to black. These claims stem from Sweet Baby having a section in the credits of SS:KtJL featuring 13 credited writers implying a sizeable influence over the story, and a November 2023 article by Game Developer revealing that Sweet Baby story and narrative consultant Kim Belair worked with Remedy on AWII "to refine the character voice and story arc" of Saga. Her actress Melanie Liburd also "offered suggestions and other insights". AWII creative director Sam Lake commented on Saga being Remedy's first black protagonist and having Nordic origins, saying that while "she isn't necessarily that connected with it, there are aspects for us developing this game from Finland that are kind of close to home [...] these different aspects coming together to form a very unique and fresh character in that sense" was a big part of her creation. Game director Kyle Rowley also commented:


Rowley denied that Sweet Baby was directly responsible for Saga's race-swap, claiming "It's absolutely not true."

Stacey Henley of TheGamer claimed in defense of Sweet Baby that "all these firms do is make suggestions" and that developers can reject suggestions they do not like, claiming that Sweet Baby was being used as a scapegoat to complain about diversity in video games and "When you resort so quickly to falsehoods, your anger is probably misplaced and unfounded."