Macronix International Co., Ltd. is exiting the ROM business that produces memory chips for Nintendo Switch and Switch 2 game cartridges, winding down production as the segment dropped to five percent of company revenue.
Macronix International Co., Ltd. will phase out its ROM products entirely by the end of the third quarter of fiscal year 2026. The company is moving its manufacturing capacity toward NOR flash and eMMC memory chips. ROM products accounted for just five percent of Macronix’s revenue during the quarter: a sharp drop from 26 percent during the same period last year. This represents a 39 percent year-over-year decline in the segment, according to David Gibson, senior analyst at MST Financial.
1/4 Nintendo's main memory chip maker is quitting the Switch business Macronix, which makes the ROM chips in Switch 1 and Switch 2 game memory cards, is phasing out that business. There will be no new ROM products, and Q3 is the last quarter it reports ROM sales separately.
The company will direct its entire planned NT$37.8 billion in capital expenditure toward eMMC and NAND memory, leaving nothing for ROM production.
Suppliers Face Nintendo’s Changing Demand
The departure of a major hardware partner affects physical software distribution, but Macronix is not Nintendo’s only supplier. Rohm Co., through its Oki Semiconductor unit, is identified as another supplier supporting Nintendo cartridge production. No shortage of original Switch games has been confirmed, and no published timetable exists for the end of Nintendo orders.
Digital Sales Rise as Physical Media Persists
Nintendo’s digital software sales reached 61.5 percent of total sales between April and June, up from 59.3 percent during the same period last year. This 2.2 percentage point increase falls within a historical range of 46.1 percent to 67.2 percent, which fluctuates based on major physical releases.
Nintendo of Latin America director Bill Van Zyll reaffirmed in October that the company has no plans to ditch physical releases: he cited player interest in collecting, sharing, and reselling them. Retail prices have not climbed, though Nintendo began selling physical game cards for a $10 premium over digital editions earlier this year.
3/4 My view: Macronix isn't Nintendo's only game memory card maker, so physical cards will likely carry on for some time. But at the margin, digital will grow, through more Game-Key Cards (which hold a download key, not the game) and digital-only sales.
More on Nintendo Switch
Nintendo's physical game cartridges could be heading for another major change. 🎮 Macronix, Nintendo's main ROM chip supplier for Switch and Switch 2 game cartridges, is planning to exit ROM production. • Production Exit: Macronix plans to stop producing ROM chips, which are… pic.twitter.com/4k47zYZzvt
Nintendo’s main provider of game cartridges is quitting the business. It’s expected this make Game Key Cards even more prevalent on Switch 2 and accelerate the transition to digital. https://t.co/JiiYPxYivY