Immigrations and Customs Enforcement mobilized today against a major threat: modchips. In "the largest national enforcement action of its kind targeting this type of illegal activity", they executed 32 search warrants of suspected modchip distributors. Nintendo put out a press release, which can be found after the break, in support of the government's actions in support of their massive business. "Nintendo and its developers and publishers lost an estimated $762 million in sales in 2006 due to piracy of its products," said Jodi Daugherty, Nintendo of America's senior director of anti-piracy, presumably counting every known piece of pirated software as a lost full-price sale.The government (and Nintendo) may see console modding as a black-and-white piracy issue, but it isn't at all. Modchips are primarily designed to enable the use of games imported from other regions, the locking of which on consoles is also used to lock out illegal copies. Turn off region lock, and you cut the audience for mod chips significantly. But even beyond opening up other regions, modchips enable users to extend the utility of their consoles in interesting ways. For an example of modchips being used for awesome, we point at the Xbox Media Center, which allows audio and video media of pretty much any format to be played on a $150 Xbox.
