Macronix, a longtime hardware collaborator with Nintendo and a primary producer of the read-only memory chips powering Switch and Switch 2 physical cartridges, is winding down its ROM production, financial analysts revealed Wednesday.
David Gibson, an industry analyst at MST Financial, reported via social media that the semiconductor company confirmed the shift during its quarterly earnings call. Macronix is setting aside development for future ROM products, and the third quarter of fiscal 2026 marks the final stretch where the firm will individually track and report its ROM earnings, according to Eurogamer.
Pivoting capacity away from cartridges
The manufacturing exit stems largely from shrinking financial returns on physical console software. ROM products generated just 5 percent of total sales for Macronix during the third quarter, dropping sharply from 26 percent in the same window one year prior, according to company reports cited by TwistedVoxel. While Gizmodo noted that the figure declined from 23 percent, reports agreed that ROM represents a dwindling slice of the manufacturer’s revenue.
Faced with limited production lines, leadership at Macronix plans to reallocate resources toward more lucrative sectors, including NOR flash, eMMC and NAND memory, TwistedVoxel reported. Analysts noted that none of the company’s planned NT$37.8 billion capital expenditure budget will support ROM assembly lines.
Macronix shares a deep history with Nintendo, having built cartridge chips across multiple console eras, spanning the Nintendo 64, Nintendo 3DS, original Switch and the newer Switch 2. The newer system has established a significant footprint, surpassing 23.68 million total units sold worldwide after debuting with 3.5 million units across its first four days, according to TwistedVoxel.
Pressure mounts on physical game media
Despite the departure of a major manufacturing ally, observers noted that physical releases will not disappear overnight. Nintendo maintains alternative component partnerships, including chip procurement through Rohm Co., formerly Oki Semiconductor, Eurogamer reported. However, shedding a primary vendor tightens an already constricted supply chain.
The move arrives amid widespread pressures across the memory chip sector. Approximately a year ago, major supplier Micron announced its departure from the consumer memory market while shutting down its Crucial line, Eurogamer reported. At the same time, players have witnessed a steady tilt toward digital storefronts. Between April and June, digital downloads made up 61.5 percent of software purchases for Nintendo, climbing from 59.3 percent during the identical period in the prior year, according to figures shared by Gibson.
To manage manufacturing expenses, Nintendo established a $10 price premium on select physical releases earlier this year, setting boxed versions like Fire Emblem: Fortunes Weave at $80 compared to $70 digitally, Gizmodo reported. Third-party studios have also leaned on game-key cards, which contain license verifications rather than fully compiled game code, requiring users to retrieve files directly from console network servers.
What happens next
Circana video game analyst Mat Piscatella noted earlier this year that although Switch 2 gave physical copies a modest boost, digital formats dominate software purchases, suggesting boxed copies may have under a decade remaining on retail shelves, according to Gizmodo. Just last month, Nintendo stated it had no plans to abandon physical cartridges, even as competitor Sony established intentions to end game disc production in 2028, Eurogamer reported. Nintendo is scheduled to release its latest quarterly earnings on Thursday, when executives may address supply continuity for Switch 2 cartridges.
