Nintendo Scores $2 Million Settlement in Switch Modding Case

Nintendo has once again demonstrated why it holds a reputation as one of the most aggressive enforcers of intellectual property rights in the gaming industry. The company recently secured a $2 million settlement against Ryan Daly, the operator of Modded Hardware, an online shop accused of selling modchips and modified Nintendo Switch consoles.

This latest move underscores Nintendo’s ongoing zero-tolerance approach toward piracy, emulation, and hardware modifications that undermine its ecosystem.

The dispute began earlier in 2024 when Nintendo sent Daly a warning in March, demanding he stop selling circumvention devices that allowed users to bypass the Switch’s digital protections. According to court documents, Daly initially appeared to comply but quietly continued offering both modchips and a mail-in service for customized Switch consoles. By July, Nintendo escalated the matter to a formal lawsuit, alleging repeated infringement despite earlier communication. Daly attempted to mount a defense, denying wrongdoing and claiming he was seeking new legal representation. However, the weight of Nintendo’s case led to a negotiated settlement rather than a prolonged court battle.

The settlement not only requires Daly to pay $2 million in damages but also binds him to a permanent injunction. Under its terms, he is forbidden from selling, modifying, promoting, or even instructing others on how to hack Nintendo hardware. In practice, this shuts down his Modded Hardware business entirely. For Nintendo, this outcome is another victory in a long series of actions aimed at protecting the Switch platform from piracy and third-party exploitation.

This lawsuit is part of a wider legal offensive. In recent years, Nintendo has targeted Switch emulator projects like Yuzu, streamers who showcased pirated titles, and even developers whose products it views as potential competition to its intellectual property. While some argue Nintendo’s hardline stance stifles creativity and community innovation, the company remains steadfast, pointing to the financial and security risks piracy poses to both itself and legitimate developers.

For players, the case is a reminder that modifying a Switch may seem like harmless tinkering, but it places individuals and businesses in the direct crosshairs of Nintendo’s legal team. With the company showing no sign of easing its strategy, the battle between enthusiasts and corporate lawyers continues to shape the broader conversation around ownership, fair use, and the limits of digital modification.