Macronix Gradually Phasing Out ROM Production for Nintendo Switch Cartridges
Macronix has announced the gradual discontinuation of ROM production for Nintendo Switch cartridges, reallocating capacity toward NOR Flash for data centers.
Macronix announced a shift in production priorities following the results of the past quarter. The company plans to gradually phase out the production of ROM memory used in cartridges for the Nintendo Switch portable console to increase supplies of NOR Flash for data centers.
In the third quarter of this year, Macronix's revenue from ROM chips decreased by 39% compared to the same period last year. Over the same period, sales of NOR Flash increased by 158%, while NAND sales surged by 768%.
Miin Wu, Chairman of the Board of Directors and CEO of Macronix, stated that demand for NOR Flash from data centers remains very high. According to him, clients are requesting expanded production capacity so the company can supply more solutions based on this type of memory. Macronix also expects further increases in memory chip prices.
Nintendo previously stated that it has no plans to abandon games on physical media. In August, the company reported that cartridges accounted for 38.5% of total game sales. This figure is higher than that of other companies, such as Capcom. Sony, on the contrary, announced its intention to abandon the release of games for PlayStation on physical media.
