Nintendo is confronting a potential supply issue after Macronix announced plans to gradually discontinue ROM production, the memory type used in Switch game cartridges. The supplier intends to redirect resources toward NOR flash memory serving data center applications.
Macronix’s financial results underscore the shift in company priorities. During Q3 2026, the company’s ROM revenue declined 39 percent compared with the prior year, while NOR memory revenue climbed 158 percent and NAND memory revenue surged 768 percent year over year. Company leadership emphasized the competitive dynamics in the data center sector, with CEO Miin Wu noting during the quarterly earnings call that data center customers are actively seeking increased NOR flash capacity and solutions. The company also projects that elevated chip pricing will continue.
Nintendo’s reliance on physical game cartridges distinguishes it from competitors facing similar supply pressures. While Sony has committed to ceasing physical game disc production beginning in January 2028, Nintendo has stated it maintains no plans to discontinue physical games. The difference in approach reflects Nintendo’s business model, in which physical titles represent a substantial revenue component. The company reported in August that physical game sales accounted for 38.5 percent of its game revenue, surpassing the physical game sales proportion at competing publishers such as Capcom.
Macronix’s decision reflects a broader industry trend of memory suppliers pivoting toward data center applications. The move parallels Micron’s earlier action of shutting down Crucial, its consumer-focused RAM and SSD brand, to concentrate on meeting artificial intelligence and data center memory demand.
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