Nintendo says it isn't planning any more Switch 2 price hikes

Macronix, a long-standing Nintendo hardware partner and primary producer of ROM memory, has announced its exit from the business. ROM chips are crucial components in Switch and Switch 2 cartridges. Industry analyst David Gibson shared the news on X, citing Macronix's latest earnings call. The company intends to discontinue ROM products by the end of the third quarter of fiscal year 2026.

Currently, ROM products constitute just 5% of Macronix's total sales, down from 26% a year ago. Consequently, Macronix is reallocating its manufacturing capacity to produce NOR (flash) and eMMC memory chips. It is important to note that Macronix is not the sole Nintendo supplier for ROM memory; another company, Rohm Co. (Oki Semiconductor), also provides parts.

Losing a key partner exacerbates the already tight supply, potentially leading to higher prices. As Gibson highlighted, this could compel publishers, including Nintendo, to adopt Game-Key Cards – a digital distribution method without physical cartridges – to circumvent additional costs. Although not explicitly stated, this development might stem from the global AI-driven memory and storage crisis, driving up the prices of consumer products and making game consoles, GPUs, and other essentials unaffordable for many.

Micron, one of the world's three largest memory manufacturers, recently announced its exit from the consumer memory business and the closure of its Crucial brand, intensifying the pressure on Nintendo, which is one of the last companies still investing in physical media. Despite Nintendo's recent statement that it has no plans to eliminate physical games due to rival Sony's decision to end disc manufacturing in 2028, the supply chain challenges could force the company to raise game prices or abandon cartridges.