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Macronix Exits ROM Chip Production, Potentially Raising Costs for Nintendo Switch Cartridges
Confirmed
In Short: Chip manufacturer Macronix is exiting the ROM chip production business, which could increase costs for Nintendo Switch cartridges.
Chip manufacturer Macronix announced it will phase out its production of ROM chips, which are used in Nintendo Switch and Switch 2 game cartridges, according to its third-quarter earnings report.
Macronix cited the shift towards more lucrative memory types like NOR and NAND-based memory and eMMCs as the reason for the change.
This move could impact Nintendo, which relies on Macronix as its main supplier for ROM chips used in physical game cartridges.
Nintendo has no immediate plans to abandon physical game cartridges, despite the shift in supplier. The company stated last month that it has no plans to give up on game cartridges in the near future.
However, the departure of Macronix could lead to increased production costs for Nintendo. Analyst David Gibson noted that Nintendo will now have to rely on other suppliers like Rohm and Lapis Semiconductor for its ROM chips.
The shift could also affect the prices of physical Switch cartridges. As ROM chip production has shrunk by 39 percent in the last year and now represents just 5 percent of Macronix’s business, the cost of producing cartridges may rise.
Digital sales have been on the rise, with digital software sales representing 61.5 percent of Nintendo’s business in the second quarter of 2026, up slightly from the previous year.
Nintendo has already started charging more for some physical games than for their digital counterparts, a trend that could continue as production costs increase.
Despite the challenges, Nintendo remains committed to physical games. The company has stated it has no plans to follow Sony into a world without physical game production.
Nintendo is also adding new features to enhance the gaming experience, such as the Zelda Notes companion service in the Nintendo Switch App.
While the shift in supplier could lead to higher costs, it remains to be seen how this will impact the broader market for physical game cartridges.
Nintendo’s decision to continue supporting physical games despite the challenges posed by the departure of Macronix highlights the enduring appeal of physical media among gamers.
What's confirmed
- Chip manufacturer Macronix announced it will phase out its production of ROM chips, which are used in Nintendo Switch and Switch 2 game cartridges, according to its third-quarter earnings report.
- Macronix cited the shift towards more lucrative memory types like NOR and NAND-based memory and eMMCs as the reason for the change.
- This move could impact Nintendo, which relies on Macronix as its main supplier for ROM chips used in physical game cartridges.
- Nintendo has no immediate plans to abandon physical game cartridges, despite the shift in supplier. The company stated last month that it has no plans to give up on game cartridges in the near future.
- However, the departure of Macronix could lead to increased production costs for Nintendo. Analyst David Gibson noted that Nintendo will now have to rely on other suppliers like Rohm and Lapis Semiconductor for its ROM chips.
- The shift could also affect the prices of physical Switch cartridges. As ROM chip production has shrunk by 39 percent in the last year and now represents just 5 percent of Macronix’s business, the cost of producing cartridges may rise.
- Digital sales have been on the rise, with digital software sales representing 61.5 percent of Nintendo’s business in the second quarter of 2026, up slightly from the previous year.
- Nintendo has already started charging more for some physical games than for their digital counterparts, a trend that could continue as production costs increase.
- Despite the challenges, Nintendo remains committed to physical games. The company has stated it has no plans to follow Sony into a world without physical game production.
- Nintendo is also adding new features to enhance the gaming experience, such as the Zelda Notes companion service in the Nintendo Switch App.
- While the shift in supplier could lead to higher costs, it remains to be seen how this will impact the broader market for physical game cartridges.
- Nintendo’s decision to continue supporting physical games despite the challenges posed by the departure of Macronix highlights the enduring appeal of physical media among gamers.
What's still developing
- And last year, Japanese publisher Inin only committed to a full Switch cartridge release for R-Type Dimensions III after it said “two new smaller cartridge [storage capacity] sizes for Nintendo Switch 2” lowered the cost of producing those carts.
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