Nintendo recently updated their EULA, stating the right to make Switch consoles unusable for hacking or piracy violations.
Other console makers like Sony also have clauses in their agreements allowing them to disable systems for unauthorized activities.
Sony's System Software License Agreement for PS5 provides a range of actions for violations, including disabling access to system software and network, among others.
Similar clauses are present in PlayStation 4 and PlayStation 3 agreements, giving manufacturers legal rights to prevent unauthorized use of their systems.