It is entirely possible to harm hardware via software, if the software is done with enough low-level code. Simple method would be to software overclock the CPU and GPU, while simultaneously either telling the CPU / GPU fans to stop running, or run very slowly. Software can also really screw up a hard-drive (by formatting the MBR) though this is fixable. Speakers can be ruined by driving them with lower frequencies than they were designed to handle.
Obviously these things can be mitigated by a user or internal hardware sensors, but if we are talking about messing with a headless machine (and the hacker doesn't care about the data) it is certainly possible to at least make it very expensive to fix the machine again. Hell, a simple BIOS flash could possibly pop a capacitor on the motherboard, if not simply make the computer no longer boot.
Obviously these things can be mitigated by a user or internal hardware sensors, but if we are talking about messing with a headless machine (and the hacker doesn't care about the data) it is certainly possible to at least make it very expensive to fix the machine again. Hell, a simple BIOS flash could possibly pop a capacitor on the motherboard, if not simply make the computer no longer boot.
Okay you're right there but that's not the context I was referring to. Bethesda itself likely doesn't have access to low enough level code to do those things to a video game console, much less a user through mods. You aren't going to physically damage a computer/game console with a program that doesn't take such low level control of the hardware.
The most popular misconception is that you can "push the console too hard" with a game and cause it to break. That isn't going to happen unless there's something wrong with the console to begin with. Computers are designed to run at full capacity and don't get "overworked" if something is "too much" for them, which is what the logic of mods being able to break consoles stems from. It's simply not something that would happen with a properly designed machine.