In a significant victory for intellectual property enforcement in the gaming industry, Nintendo has secured a $2 million settlement from a Michigan resident accused of selling modified Nintendo Switch consoles and piracy-enabling devices. The case, which unfolded in a Seattle federal court, highlights the company’s aggressive stance against hardware modifications that facilitate unauthorized game copying and distribution.

Ryan Daly, operating under the name Modded Hardware, initially agreed to cease selling items like the MIG Switch flashcart and MIG Dumper—devices marketed as backup tools but capable of running pirated software. However, according to details reported by Tom’s Hardware, Daly continued his operations, prompting Nintendo to file a lawsuit in July 2024.

The Legal Battle and Self-Representation Risks

Daly chose to represent himself in court, a decision that industry observers noted as particularly bold given Nintendo’s formidable legal resources. Court filings, as covered in Ars Technica, show Daly denying all accusations and offering novel defenses, including claims that his products were legitimate backup solutions rather than piracy tools.

Despite these efforts, the settlement terms are stringent. Daly must pay Nintendo $2 million in damages and is permanently enjoined from selling, distributing, or even possessing any modded Nintendo hardware. This extends to a ban on reverse engineering Nintendo systems or sharing links to related materials, effectively barring him from the modding community indefinitely.

Implications for Hardware Modding Communities

The case underscores broader tensions between console manufacturers and third-party modders. Nintendo’s pursuit aligns with its history of litigation against entities like the Team Xecuter group, which faced criminal charges for similar activities. Insights from Kotaku reveal that Daly’s initial denial of wrongdoing gave way to the settlement, likely due to mounting evidence of his site’s operations.

For industry insiders, this outcome signals potential ripple effects on online marketplaces where modchips and flashcarts are sold. Platforms like Etsy or independent sites may face increased scrutiny, as Nintendo’s anti-piracy team continues to monitor and target sellers globally.

Nintendo’s Broader Anti-Piracy Strategy

This settlement is part of Nintendo’s multifaceted approach to protecting its ecosystem, especially as rumors swirl about the upcoming Switch successor. Reporting from Insider Gaming emphasizes the permanent ban on Daly’s activities, which could deter others from similar ventures.

Experts in gaming law suggest that such cases strengthen precedents under the Digital Millennium Copyright Act (DMCA), making it riskier for individuals to challenge large corporations without legal counsel. Daly’s pro se defense, while admirable in its tenacity, ultimately highlighted the perils of navigating complex IP disputes alone.

Future Outlook for Console Security

Looking ahead, this resolution may influence how modding communities evolve, pushing innovations toward software-based solutions that skirt hardware alterations. Publications like GameRant note the hefty financial penalty as a cautionary tale, potentially curbing the proliferation of devices that undermine game sales.

As Nintendo prepares for its next hardware generation, insiders anticipate even tighter security measures to combat piracy from the outset. The Daly case, resolved in September 2025, serves as a stark reminder of the high stakes involved in tampering with proprietary gaming technology, reinforcing the boundaries between legitimate customization and outright infringement.