Nintendo Switch 2 cartridge maker Macronix exits ROM business: Why it's bad news for physical game lovers

Macronix, Nintendo's main physical cartridge supplier for the Switch 2, is exiting the ROM production business. The decision comes as demand for physical game formats continues to weaken, with ROM sales contributing just 5% of Macronix's total revenue last quarter, compared with 26% a year earlier. There is no indication of an immediate shortage of Nintendo game cartridges. However, many say that this may push the company towards digital distribution.

Analyst David Gibson said physical games are not being phased out for now but Macronix's decision may force Nintendo to move towards a digital-only era.

Nintendo gamers are already buying more digital games

The shift away from physical cartridges is not happening in isolation. Nintendo's own sales figures show that digital purchases are becoming an increasingly important part of its business. As reported by Nintendoeverything, digital formats accounted for approximately 61.5% of Nintendo's software sales between April and June, up from 59.3% during the corresponding period last year.


The share fluctuates depending on major game launches and the performance of physical releases. Gibson noted that the digital share of Nintendo's software sales ranged between 46.1% and 67.2% over the past year.

The broader trend is also visible across the US gaming market.

Mat Piscatella, chief gaming analyst at Circana, in a post on X observed that physical game sales in the US have recorded only a modest increase this year, largely driven by the Switch 2 launch. However, he pointed out that "the overwhelming majority of game sales are digital now."

Game-key cards: Are physical Nintendo games becoming digital in disguise?

There is another development that has frustrated some physical game collectors: the growing popularity of game-key cards. Several third-party developers are opting for these cards because they are more economical than traditional cartridges. But there is a catch.

Unlike conventional physical games, game-key cards generally do not contain the complete game. Players must download the title, while the card primarily acts as a key to access it.

Although these cards can be traded or resold, their long-term usefulness raises questions about dependence on Nintendo's servers and digital infrastructure.

For gamers who buy physical copies to avoid digital restrictions, this represents a significant change in what owning a physical game actually means.

Physical Nintendo games could become more expensive

The growing divide between physical and digital formats is also reflected in Nintendo's pricing strategy. The company has recently increased the prices of some digital titles. For instance, "Fire Emblem: Fortunes Weave" is priced at $70 digitally and $80 in physical format.

If cartridge manufacturing becomes more concentrated among fewer suppliers, physical editions could face additional cost and supply pressures. That could make physical games increasingly expensive, potentially pushing them towards the collector's market rather than everyday gaming.