Christopher Jakubowski, 31, admitted advertising, importing and selling more than 5,000 of the components for Nintendo Wii, Sony Playstation 3, and Nintendo DS consoles.
The devices allowed users to circumvent copyright protection so that they could play counterfeit games.
Jakubowski was given a nine-month prison sentence, suspended for 12 months, and ordered to carry out 200 hours community service after pleading guilty to 10 offences at Leeds Crown Court.
The court heard a joint investigation by West Yorkshire Police and West Yorkshire Trading Standards led to a warrant being executed at two properties linked to Mr Jakubowski, including his home address.
A large number of chipping devices as well as computers and documentation in relation to the business were seized.
Graham Hebblethwaite, chief officer of West Yorkshire Trading Standards Service, said: “This case is a prime example of how business can be affected by individuals or traders that flout the law by selling or encouraging the use of counterfeit goods.
“Successful businesses spend millions of pounds a year protecting their copyright and it is only fair that they are protected from the harm done by sales of illegal goods.”
Coun Neil Taggart, chairman of West Yorkshire Joint Services Committee, which oversees the work of Trading Standards, added: “The sale of counterfeit goods causes serious harm to the economy.
“Crime like this can cause major losses to legitimate companies, which in turn could lead to people losing their jobs.”