Macronix, a longtime maker of ROM chips used in physical Nintendo game cartridges, has announced it will leave the cartridge ROM business.
The move affects production lines that supplied ROM for the original Nintendo Switch and continued into support for Switch 2 hardware.
The company said it will not introduce new ROM products and that the third quarter will be the last quarter in which it reports ROM sales as a separate line item.
In its financial disclosure, Macronix reported that ROM sales have shrunk to just 5 percent of overall revenue, down from 26 percent a year earlier.
Company leadership explained the change as a capacity decision: limited manufacturing capacity will be redirected to NOR and eMMC memory chips, which the firm identified as higher-priority product lines.
Analyst David Gibson, who shared the announcement publicly, noted that Macronix is not the only supplier of game cartridge memory for Nintendo hardware.
He said that other memory manufacturers remain in the market, meaning collectors and retailers should not assume an immediate end to physical releases.
Gibson also pointed to Nintendo's ongoing shift toward digital distribution: between April and June, digital sales made up 61.5 percent of Nintendo's software revenue, an increase from 59.3 percent in the same period the previous year.
He added that the digital share has fluctuated between 46.1 percent and 67.2 percent over the last year and that major physical releases can materially affect that percentage.
What this means for the market: Macronix’s exit reduces one of the known suppliers of ROM for cartridge-based media, but it does not automatically remove physical cartridges from Nintendo’s supply chain.
Nintendo has multiple partners across manufacturing and distribution for Switch and next-generation hardware.
At the same time, Nintendo’s steady increase in digital sales — reflected in recent quarterly data — underscores a broader industry trend toward downloadable titles on platforms like the Nintendo eShop.
Developers, publishers and collectors should follow updates from Nintendo and remaining hardware partners about cartridge production and availability.
For continued coverage of Nintendo Switch 2 hardware, Nintendo Direct announcements and eShop trends, check our archives and upcoming reports.
The move affects production lines that supplied ROM for the original Nintendo Switch and continued into support for Switch 2 hardware.
The company said it will not introduce new ROM products and that the third quarter will be the last quarter in which it reports ROM sales as a separate line item.
In its financial disclosure, Macronix reported that ROM sales have shrunk to just 5 percent of overall revenue, down from 26 percent a year earlier.
Company leadership explained the change as a capacity decision: limited manufacturing capacity will be redirected to NOR and eMMC memory chips, which the firm identified as higher-priority product lines.
Analyst David Gibson, who shared the announcement publicly, noted that Macronix is not the only supplier of game cartridge memory for Nintendo hardware.
He said that other memory manufacturers remain in the market, meaning collectors and retailers should not assume an immediate end to physical releases.
Gibson also pointed to Nintendo's ongoing shift toward digital distribution: between April and June, digital sales made up 61.5 percent of Nintendo's software revenue, an increase from 59.3 percent in the same period the previous year.
He added that the digital share has fluctuated between 46.1 percent and 67.2 percent over the last year and that major physical releases can materially affect that percentage.
What this means for the market: Macronix’s exit reduces one of the known suppliers of ROM for cartridge-based media, but it does not automatically remove physical cartridges from Nintendo’s supply chain.
Nintendo has multiple partners across manufacturing and distribution for Switch and next-generation hardware.
At the same time, Nintendo’s steady increase in digital sales — reflected in recent quarterly data — underscores a broader industry trend toward downloadable titles on platforms like the Nintendo eShop.
Developers, publishers and collectors should follow updates from Nintendo and remaining hardware partners about cartridge production and availability.
For continued coverage of Nintendo Switch 2 hardware, Nintendo Direct announcements and eShop trends, check our archives and upcoming reports.
