The supply of ROM chips used in physical game cartridges on Nintendo Switch consoles has also been affected by AI fever. Macro Electronics, Nintendo’s largest supplier of ROM chips, announced in its third quarter earnings report that it intends to discontinue ROM chip production and leave the gaming industry. Macronix says ROM chip production has shrunk 39% in the past year and now accounts for just 5% of its business. ROM chips are gradually being replaced by other memory chips that are more profitable and in greater demand. This means that Nintendo can only rely on other ROM chip suppliers such as Rohm and Lapis Semiconductor in the future, which means that the production cost of gaming cartridges may rise further. Nintendo has promised to continue to offer physical game cartridges in the future, not follow Sony’s lead in offering only digital versions of the game.
Hangtong
Hangtong Technology