A Nintendo Switch and Switch 2 cartridge manufacturer is ceasing operations, potentially raising prices for physical games.

Background: ROM Chips in Nintendo Cartridges

For years, Macronix has been a longtime Nintendo hardware partner and one of the main producers of ROM memory. Those ROM chips are key components in Switch and Switch 2 cartridges, so Macronix's decision to leave the business has direct consequences for physical Nintendo games. The announcement was shared on X by industry analyst David Gibson and was disclosed in Macronix's latest earnings call.

Earlier Signal: Micron Leaves Consumer Memory

Nearly one year ago, Micron, one of the three largest memory manufacturers in the world, announced it was exiting the consumer memory business and shutting down its Crucial brand. That move came amid an ongoing global AI-driven memory and storage crisis. The crisis has made many consumer products unaffordable for millions, pushed game console prices higher, and put GPUs out of reach for PC builders. It has also led major memory manufacturers to redirect resources to business segments where demand is higher.

Latest Announcement: Macronix Phase-Out by End of Fiscal Year 2026 Third Quarter

Macronix plans to phase out ROM products entirely by the end of the third quarter of fiscal year 2026. Reported third-quarter sales show ROM products at just 5 percent of Macronix's business, down significantly from 26 percent just one year ago. The company is shifting manufacturing capacity to instead focus on NOR (flash) and eMMC memory chips. Although Macronix did not directly link the exit to the memory crisis, the move appears to be another side effect of that wider shortage.

Supply Impact: Prices, Game-Key Cards, and Publisher Options

Nintendo does not depend on Macronix alone for ROM memory; it also sources parts from Rohm Co. (Oki Semiconductor). Still, losing a key partner puts more pressure on an already strained supply, which could result in higher prices. Gibson said that pressure could also push more publishers, including Nintendo, to ship games as Game-Key Cards instead. Game-Key Cards do not include physical cartridges and allow publishers to avoid the extra cost.

Current Stage: Nintendo Still Backs Physical Games

The situation could put more pressure on Nintendo, already one of the last holdouts continuing to invest in physical media, to raise prices of games even further or abandon cartridges. Just last month, Nintendo said it has no plans to ditch physical games, in the wake of rival Sony's decision to end disc manufacturing in 2028.

At this point, Nintendo's public stance still supports physical games. The unresolved issue is cartridge supply: Macronix's exit from ROM products by the end of the third quarter of fiscal year 2026 may make cartridges more expensive to produce, while publishers may look toward Game-Key Cards as a lower-cost alternative.