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Physical Games Media Gets More Bad News as Nintendo Chip Maker Exits Business
Macronix, Nintendo’s main supplier of ROM chips for physical Switch and Switch 2 game cards, is phasing out the business, adding pressure to physical game releases. The change could raise production costs and encourage more digital sales, although an analyst says cartridges are likely to continue for now.
ROM accounted for 5% of Macronix’s third-quarter sales, down from 26% a year earlier, and the company plans to direct limited capacity towards NOR and eMMC memory chips. Nintendo has said it has no plans to abandon physical games, while 61.5% of its software sales from April to June were digital, up 2.2% year on year. Some Switch 2 physical releases already use game-key cards that require downloading the game.
In short
- Macronix is phasing out ROM chips used in Nintendo game cards.
- Higher costs could push more Nintendo sales towards digital.
- Nintendo says it has no plans to drop physical games.
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The strongest fair case each way — we don't pick a winner.
The case for
Moving away from ROM production could raise costs and make physical releases less practical, especially as some Switch 2 cards already require downloads. Shifting scarce capacity to chips with stronger demand may be commercially sensible, while digital sales offer convenience and reduce manufacturing and distribution needs.
The case against
The phase-out need not mean the end of physical games: an analyst expects cartridges to continue for now, and Nintendo says it has no plans to abandon them. Physical copies provide a lasting, collectible format and access that does not depend on downloading a game, so keeping them available may matter to customers even as digital sales grow.
Explained simply
Nintendo sells games for its Switch consoles both as downloads and on physical game cards. Macronix, a Taiwanese chipmaker, has supplied ROM chips used in those cards; ROM stores game data and is designed to be read rather than rewritten.
The shift away from ROM production could affect the cost and availability of cards, though analysts expect cartridges to remain in use for now. Nintendo says it intends to keep offering physical games, while a growing share of its software sales is digital. Some Switch 2 game-key cards contain a code or key that lets the console download the game, rather than the full game being stored on the card.