Macronix Phases Out ROM Chip Production for Nintendo Switch Cartridges

Macronix, a leading manufacturer of ROM chips for Nintendo Switch cartridges, is phasing out its production of these essential components, marking a significant shift in the physical games media industry. This move comes as the company's ROM revenue for Nintendo Switch cartridges has seen a notable decline, now accounting for just 5% of its Q3 2026 sales, down from 26% a year earlier ¹²³⁴.

This reduction in ROM chip sales is part of Macronix's strategic decision to pivot towards NOR flash memory, which is increasingly important for data center applications. By focusing on this segment, Macronix aims to capitalize on growing demand for high-performance storage solutions in the tech sector ¹⁴.

Despite the changes at Macronix, Nintendo remains steadfast in its commitment to physical games. The Japanese gaming giant has no immediate plans to abandon the cartridge format, which continues to be a beloved feature among many players ¹². However, some Switch 2 games have introduced a hybrid model where physical copies serve as keys for downloading digital versions from the Nintendo eShop, rather than containing all the game data ²³.

In the broader context, Nintendo's software sales show a steady trend towards digital purchases. For the fiscal quarter ending June 2026, 61.5% of Nintendo's software sales were digital, marking a 2.2% increase from the previous year ²⁴. Despite this growth in digital sales, physical games still account for 38.5% of Nintendo's game sales, a proportion that is notably higher than other major gaming companies like Capcom ¹.

Macronix's financial performance in Q3 2026 was robust, with a net profit of approximately $337 million, reflecting strong demand for its NOR and NAND memory products. Revenue from NOR memory saw a substantial increase of 158% compared to the previous year, while NAND memory revenue surged by an impressive 768% ¹⁴. These figures underscore the company's success in adapting to market needs and its expectation of continued growth in the semiconductor sector ¹.

The switch to NAND flash memory for the Nintendo Switch 2 further highlights the evolving landscape of game consoles. ROHM Semiconductor provides the NAND flash memory used in the latest Switch model, indicating a shift away from traditional ROM chips for game storage ⁴.

High manufacturing costs and limited silicon suppliers continue to pose challenges for game publishers, affecting their profit margins. The specialized, high-speed ROM technology used in Nintendo's game cards is unique to its hardware, adding another layer of complexity to the production process ³.

What we know

• Macronix is phasing out its production of ROM chips for Nintendo Switch cartridges ¹²³⁴
• Macronix's ROM revenue for Nintendo Switch cartridges decreased significantly, making up only 5% of its Q3 2026 sales, compared to 26% a year prior ²³⁴
• Macronix will likely focus on NOR flash memory for data centers instead of ROM chips ¹⁴
• Nintendo remains committed to physical games and has no plans to abandon them ¹²
• Some physical copies of Switch 2 games act as keys for downloading the game from the Nintendo eShop rather than containing the game data ²³
• In the fiscal quarter ending June 2026, 61.5% of Nintendo's software sales were digital, marking a 2.2% increase from the previous year ²⁴
• Physical games make up 38.5% of Nintendo's game sales, which is higher than other gaming companies such as Capcom ¹
• Macronix's revenue from NOR memory increased by 158% in Q3 2026 compared to the previous year ¹
• Macronix's revenue from NAND memory increased by 768% in Q3 2026 compared to the previous year ¹
• Macronix expects continued chip price increases ¹
• Nintendo charges more for certain games when sold physically compared to digitally ²
• ROM chips allow for quick game loading due to direct reading by the console ³
• Nintendo's game cards use specialized, high-speed ROM technology specific to Nintendo hardware ³
• High manufacturing costs and limited number of silicon suppliers affect publishers' profit margins ³
• Nintendo Switch 2 uses NAND flash memory from ROHM Semiconductor ⁴
• Macronix reported a net profit of approximately $337 million for Q3 2026 ⁴