He Found Nintendo Without a Layer. Now He Owes $2 Million

Nintendo settles its Switch modchip lawsuit for $2 million and a sweeping permanent injunction. Here’s what it means, the timeline, and the likely impact for UAE gamers.

Mufaddal Fakhruddin
By
Mufaddal Fakhruddin
Mufaddal Fakhruddin has been writing about games and technology for the past 15 years. He has lost count as to how many reviews he has written...
4 Min Read
He Found Nintendo Without a Layer. Now He Owes $2 Million
TL;DR
  • Nintendo’s Switch modchip case ends in a $2m settlement plus a permanent injunction.
  • The order bans selling, handling, linking to or documenting circumvention devices; it also compels domain transfer and destruction of hardware.
  • The case follows Nintendo’s broader anti-piracy push, including the Yuzu settlement.

Nintendo has settled its case against a Switch modchip seller for $2 million (about AED 7.35m). The court will also enter a permanent injunction. The seller, Ryan Daly, previously denied wrongdoing but agreed to the joint stipulation. The case centres on modchips and MIG devices that let users bypass Switch security and play pirated games.

What happened: the $2m settlement and sweeping injunction

Nintendo filed the complaint in 2024. The two sides have now submitted a joint stipulation for final judgment. It awards Nintendo $2,000,000 and imposes strict rules on Daly.

  • $2,000,000 judgment (≈ AED 7.35m at AED 3.6725 per USD)
  • Permanent ban on selling, handling, or promoting modchips, MIG Switch, MIG Dumper, or modded consoles
  • Ban on publishing guides or links that help others mod Nintendo systems
  • Transfer of the moddedhardware.com domain to Nintendo
  • Seizure or destruction of any remaining devices and related materials

The injunction is broad. It bars Daly from touching circumvention devices, offering modding services, linking to sellers, reverse-engineering Nintendo products, or holding an interest in a business that does any of the above. The order also compels domain transfer and allows seizure or destruction of hardware tied to the activity.

The allegations: modchips, MIG devices and pre-installed games

VGC reports Nintendo first warned Daly in March 2024. It then sued after he allegedly kept selling modded Switch consoles and MIG Switch flashcarts. The complaint also said customers could mail in consoles to be hacked, often with pirated games pre-loaded, including series like The Legend of Zelda

  • Contact in March 2024, lawsuit filed in Seattle
  • Sales of modded consoles, MIG Switches and a mail-in mod service
  • Alleged pre-installation of pirated games (Mario, Zelda, Metroid)
  • Defendant initially denied wrongdoing and raised 17 defences

Those claims underpin the injunction’s language. The stipulation states MIG devices and modchips circumvent Switch security, enabling people to copy and play pirated games. It also notes copying and distributing Nintendo games, which amounts to copyright infringement.

Context: Nintendo’s wider crackdown on Switch piracy

This outcome follows other high-profile actions. In 2024, the creators of the Yuzu Switch emulator agreed to pay $2.4m and shut down distribution under a permanent injunction. Nintendo has paired lawsuits with broad orders aimed at stopping tools that enable piracy at scale.

  • Yuzu settlement: $2.4m and a permanent injunction
  • Focus on tools that bypass protection measures
  • Similar language around “significant and irreparable harm”

The messaging is consistent. Nintendo argues that modchips, flashcarts and hacked consoles enable widespread, hard-to-detect infringement. Courts have accepted that reasoning and granted sweeping relief.

FAQ

Who was sued and for what?

Ryan Daly, who ran “Modded Hardware,” over selling modchips, MIG devices and modded Switches, plus providing a mail-mod service. Nintendo alleged DMCA violations and copyright infringement.

What exactly does the injunction ban?

Selling, handling or possessing modchips/MIG devices; offering modding services; publishing guides or links; reverse-engineering Nintendo products; even investing in a business that does these things. It also orders domain transfer and destruction/seizure of devices.

Does this affect normal Switch owners in the UAE?

Regular users aren’t impacted. But importing or using circumvention gear carries real risks. Expect fewer sellers and stronger enforcement. For safe upgrades, use official storage and accessories. (See our storage guides below.)

SOURCES:VGC
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Mufaddal Fakhruddin has been writing about games and technology for the past 15 years. He has lost count as to how many reviews he has written over the years, but he is sure headphone reviews make up at least 70% of that.