Core Points - Nintendo's legal department has achieved another victory by reaching a settlement with Modded Hardware, which will pay $2 million (approximately 14.27 million RMB) to Nintendo [1] - The court issued a permanent injunction against Modded Hardware, prohibiting the sale of any MiG Switch flashcards, mod chips, or other devices that circumvent Nintendo's anti-piracy measures [1][3] - Nintendo has also seized products and websites related to Modded Hardware's business [1] Industry Context - This settlement marks Nintendo's second legal victory this summer, following the closure of the NSw2u website, a popular platform for distributing pirated Switch games, in collaboration with the FBI and Dutch authorities [3] - Earlier in March 2024, Nintendo reached a settlement with Tropic Haze, the developer of the Yuzu emulator, which agreed to pay $2.4 million (approximately 17.12 million RMB) and permanently cease operations [5] - The U.S. District Court in Seattle confirmed that MiG Switch and related products violated copyright protections under the DMCA, consistent with Nintendo's previous successes in anti-piracy lawsuits [5] - Ahead of the anticipated release of Switch 2, Nintendo has amended its user agreement to state that the company reserves the right to permanently ban unauthorized modified consoles [5]

Core Viewpoint - Nintendo has confirmed that it will not adopt the "keycard" model for its first-party games on the upcoming Switch 2, maintaining traditional physical game cartridges to ensure players can experience games without additional downloads [1][3]. Group 1: Nintendo's Strategy - Nintendo's official response indicates a commitment to traditional physical game cartridges for first-party titles, ensuring a seamless gaming experience for players [1][3]. - Doug Bowser, President of Nintendo of America, emphasized that physical game cartridges remain a crucial part of the company's business model [4]. - The upcoming Switch 2 games, such as "The Legend of Zelda: Breath of the Wild" and "The Legend of Zelda: Tears of the Kingdom," will integrate original games with upgrade packs on a single dedicated cartridge, eliminating the need for download codes [4]. Group 2: Third-Party Game Distribution - Third-party developers may adopt different distribution methods, with some games like "Street Fighter 6" using the keycard model, while others like "Cyberpunk 2077: Ultimate Edition" will continue to use traditional full-data cartridges [4][5]. - Nintendo has reportedly provided third-party developers with three distribution formats: pure digital, 64GB capacity physical cartridges, and keycards, with the higher cost of 64GB cartridges leading some smaller developers to opt for keycards [4]. Group 3: Game Ecosystem Clarity - Several confirmed first-party Switch 2 upgrade games will utilize the integrated cartridge format, contributing to a clearer gaming ecosystem as more details emerge [5].