Nintendo just landed one of their biggest legal wins in the ongoing battle against console modification.
The gaming giant secured a $2 million settlement from Ryan Daly, the operator behind Modded Hardware, a business that sold tools designed to crack open Nintendo Switch consoles.

Nintendo’s Case Against Modded Hardware
Back in June 2024, Nintendo filed a federal lawsuit in Seattle against Daly’s operation. The company accused Modded Hardware of selling circumvention devices including mod chips and MIG Switch devices that allowed users to play pirated games on authentic consoles.
Daly initially denied the allegations and ownership of the business when he responded without legal representation in October 2024. However, after private negotiations, both parties reached this settlement to avoid a trial scheduled for January 2026.

Devastating Settlement Terms
The agreed judgment doesn’t just hit Daly’s wallet hard. Beyond the $2 million payout, he faces a permanent injunction that completely bans him from the modding scene. He can’t sell, distribute, or even link to circumvention devices like mod chips or hacked consoles.
The settlement also requires Daly to transfer his moddedhardware.com domain directly to Nintendo and destroy any remaining circumvention devices in his possession. He’s even prohibited from reverse engineering Nintendo products going forward.

Industry Impact and Precedent
This case represents Nintendo’s broader strategy to protect their Switch ecosystem from piracy. The company has consistently pursued legal action against modding operations, previously taking down the notorious Team-Xecuter hacking group.
The settlement sends a clear message to anyone considering entering the console modification business that Nintendo will pursue maximum damages and permanent bans from the industry.
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Final Thoughts
This $2 million settlement establishes a new benchmark for Nintendo’s enforcement actions.
While the court still needs to approve the final judgment, this case demonstrates Nintendo’s commitment to protecting their intellectual property through aggressive legal action against commercial modding operations.
For more details on this story, refer to the official lawsuit documentation (PDF), the report from TorrentFreak, and this YouTube video that explains the situation:
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