Microsoft and Sony have demonstrated that hardware security can be more or less perfected, neither of their systems have been compromised via hardware attacks for several generations now.
[0] https://www.gamesindustry.biz/unpatchable-hardware-exploit-l...
[1] https://gbatemp.net/threads/scanned-drilling-template-16d4s-...
The Xboxes have held up extremely well on the software front as well, and although the Playstation software isn't so robust (they use FreeBSD and routinely get owned by upstream CVEs) their secure boot has never been broken, which limits how much you can do with a software jailbreak. PS3 jailbreaks had continuity where you could upgrade an exploitable firmware to a non-exploitable one while retaining a backdoor, but the PS4s secure boot put an end to that.
And for Rust fans, its firmware has been rewriten.
Perceived failure of the Wii U and the total reboot of the Switch project itself: https://mynintendonews.com/2020/12/22/nintendo-leak-shows-sw...
A decade ago the engineers designing these chips knew there were several angles of attack but there just wasn’t enough resources put into closing these holes.
Now every know angle of attack is closed. Even if you delid the chip and reverse engineer every single gate and can probe individual metal wires on the chip, it’ll still be nearly impossible to break the hardware security. Power supply and EM glitching is also protected against (can’t speak for Switch 2 but I’m speaking in general about chips going forward)
Could be bugs and mistakes that allows someone to bypass security, of course. Both in hardware and software. But I don’t think there will be general purpose angles of attack that can be used to bypass security going forward.
Microsoft talked openly about implementing those safeguards in the Xbox One, and they've held up for a decade or so now.
Even if the software is absolutely bulletproof, you can hack almost everything by modifying the hardware. Cutting the power of the CPU for a tiny amount of time for example can cause it to glitch in a way that bypasses the security checks. This is accessible enough for at least one person to get in and dump games.
When it comes to video games. That's not much of a demonstration in the grand scheme of things.
I think Nintendo has a case to make that Switch emulation is costing them real money.