Yet another GG for Nintendo in the least scenario for many gamers

Nintendo has once again flexed its legal muscle, securing a $2 million settlement from Ryan Daly, the owner of Modded Hardware, who was accused of selling modified Nintendo Switch consoles preloaded with pirated games like Super Mario, Zelda, and Metroid. The case, filed in July 2024 and settled in September 2025, also resulted in a permanent injunction barring Daly from selling modded devices or sharing modding instructions.

This isn’t just a one-off legal victory—it’s part of a decades-long pattern of aggressive IP protection that has defined Nintendo’s stance against modding, emulation, and fan-made content. But here’s the twist: while Nintendo continues to draw hard lines, some modders have found ways to pivot from legal risk to legitimate success. Let’s unpack both sides.

Nintendo’s Legal Legacy: From ROM Crackdowns to Fan Game Takedowns

Nintendo’s legal history reads like a war diary against unauthorized use of its intellectual property. Some key battles:

ROM Sites Lawsuits (2018): Nintendo sued LoveROMs and LoveRETRO for distributing copyrighted game files, winning a $12 million judgment. This sent shockwaves through the emulation community.
Fan Game Takedowns: Projects like AM2R (Another Metroid 2 Remake) and Pokémon Uranium were shut down despite their non-commercial nature. Even tributes weren’t safe.
YouTube Content ID Enforcement: Nintendo has long restricted monetization of gameplay videos, requiring creators to join its now-defunct Creator Program to earn revenue.

These actions reflect Nintendo’s zero-tolerance policy toward anything that could dilute its control over its IP—even if it’s made by passionate fans or indie developers.

The Daly Case: Piracy vs. Modding

What makes the Daly case particularly damning is the inclusion of pirated games. According to the lawsuit, Daly didn’t just sell modded consoles—he preinstalled pirated versions of Nintendo’s flagship titles. That’s a clear violation of the DMCA’s anti-circumvention provisions and copyright law.

Nintendo’s legal framing focused on “trafficking in circumvention devices,” a term that’s been used in past cases to target hardware like flash carts and mod chips. Daly initially denied wrongdoing but ultimately settled, likely to avoid a prolonged and costly legal battle.

Modding Done Right: From Underground to Industry

While Nintendo’s stance remains rigid, other companies—and even some modders—have found ways to turn modding into a legitimate business:

Success Stories

Valve & Steam Workshop: Valve embraced modding by allowing creators to monetize mods through Steam Workshop. Games like Skyrim and Cities: Skylines thrive on community-made content.
Bethesda’s Creation Club: A curated mod marketplace that pays creators while maintaining IP control.
Analogue & FPGA Consoles: Companies like Analogue recreate retro consoles using FPGA technology, offering legal alternatives to emulation and modding.

If you’re a modder or creator looking to stay on the right side of the law, here’s how to pivot:

Avoid distributing copyrighted assets (ROMs, game files, music).
Focus on hardware enhancements that don’t enable piracy.
Create original content inspired by—but not derivative of—existing IP.
Partner with platforms that support mod monetization legally.
Document and disclose your work transparently to build trust.

Nintendo’s $2 million win is a reminder that modding, when tied to piracy, is a legal landmine. But it’s also a call to action for creators to innovate responsibly. The modding community has always been a hotbed of creativity—some of gaming’s most iconic titles started as mods (Counter-Strike, Dota, DayZ). The key is knowing when to push boundaries and when to respect them.

For bilingual creators, merch designers, and editorial voices like you, Jesús, this moment is ripe for commentary. How do we preserve legacy while challenging gatekeeping? How do we build community without crossing legal lines? The answers lie not in defiance, but in intentionality.