Hacker Ryan Daley Ordered to Pay Nintendo $2 Million in Switch Modding and Piracy Lawsuit

Nintendo’s Latest Legal Victory Against Modding

Nintendo has once again proven that it will aggressively defend its intellectual property from anyone who attempts to undermine it. A federal judge in Washington recently ordered Ryan Michael Daley to pay the company $2 million in damages after he was found guilty of selling modded Nintendo Switch consoles, flash cartridges, and modchips through his site Modded Hardware. The ruling also permanently bans him from engaging in any future modding activities or using devices designed to bypass Nintendo’s built-in security.

Nintendo argued that Daley’s work caused “significant and irreparable harm” to its business by enabling large-scale piracy. The court agreed, pointing to the fact that his devices and services allowed the public to distribute and play pirated copies of games. The judgment goes further than just financial penalties. It orders the seizure and destruction of any modding tools or hacked consoles in Daley’s possession, effectively cutting off his entire operation.

This is not an isolated event but part of a broader legal campaign. Nintendo has consistently targeted modders, ROM distributors, and emulator developers in court. In the past year, it has shut down popular Switch emulators like Yuzu, and it has threatened to block online services on the upcoming Switch 2 if it detects modified hardware.

The Rise and Fall of Modded Hardware

Daley operated Modded Hardware, a site that openly sold pre-modified consoles, MIG cartridges, and the tools needed to circumvent Nintendo’s protections. According to Kotaku, customers could even receive consoles returned with pirated software already installed.

Nintendo initially gave Daley an opportunity to walk away in early 2024. The company threatened legal action if he did not shut down his business. At first, Daley appeared to agree, but within months he returned to selling modded systems. That reckless choice sealed his fate. In June 2024 Nintendo escalated matters by filing a lawsuit, and from there Daley’s legal situation quickly deteriorated.

What surprised many observers is that Daley chose to fight Nintendo without legal representation. Court documents show that instead of carefully crafted arguments, he filed short responses denying accusations and claiming defenses such as “fair use” or “lack of unclean hands.” These tactics failed to convince the judge, and Nintendo’s legal team easily dismantled his case.

A $2 Million Lesson in Copyright Law

The settlement is financially devastating. Whether Daley will ever be able to pay the full $2 million judgment is uncertain, but Nintendo has shown in previous cases that it does not expect repayment in full. The company is far more interested in setting legal precedents and discouraging others from attempting similar schemes.

This case echoes Nintendo’s battle against Gary Bowser, a hacker linked to the Team Xecuter piracy group. Bowser was sentenced to prison in 2021 and ordered to pay over $10 million in restitution. After serving his time, Nintendo successfully garnished a portion of his future wages. Daley now finds himself in a similar position, with an agreement so strict it bars him from even teaching others how to mod a Switch for the rest of his life.

The ruling sends a clear signal that Nintendo will not tolerate piracy or circumvention of its hardware protections. While homebrew developers and enthusiasts argue that modding enables creativity and preservation, Nintendo continues to draw a hard line, emphasizing that the majority of these tools are used to pirate games.

Nintendo’s War on Piracy Shows No Signs of Slowing

Daley’s downfall highlights the risk taken by anyone attempting to profit from console modding. Nintendo has made it clear that it will pursue lawsuits relentlessly, regardless of whether the defendant is a large piracy network or a single entrepreneur.

In 2023 and 2024 alone, the company cracked down on multiple emulator developers, forced the closure of file-sharing sites, and warned that the Nintendo Switch 2 could be permanently disabled if tampered with. As the gaming giant prepares to launch its next generation of hardware, it appears determined to ensure the Switch era does not repeat the rampant piracy seen on earlier platforms like the Nintendo DS and Wii.

For Ryan Daley, once known online as “Homebrew Homie,” the legal fight is over. He will never again be able to touch Nintendo hardware in a modding capacity, and his once-active website has been seized. The $2 million price tag is now a permanent reminder of what happens when you take on one of the most powerful companies in gaming without legal support.

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