A modchip is a small electronic device used to alter or disable artificial restrictions of computers or entertainment devices. Modchips are mainly used in video game consoles, but also in some DVD or Blu-ray players. They introduce various modifications to its host system's function, including the circumvention of region coding, digital rights management, and copy protection checks for the purpose of using media intended for other markets, copied media, or unlicensed third-party (homebrew) software.
A modchip, the blue circuit board, attached to a PlayStation mainboard.
A regional lockout is a class of digital rights management preventing the use of a certain product or service, such as multimedia or a hardware device, outside a certain region or territory. A regional lockout may be enforced through physical means, through technological means such as detecting the user's IP address or using an identifying code, or through unintentional means introduced by devices only supporting certain regional technologies.
Cases for SFC games in Japan and PAL regions (top) and North American (bottom) regions. Notice the slots in the bottom cartridge to accommodate for plastic tabs in the North American console.