Nintendo Switch ROM Cartridge Manufacturer to Leave Market

The rise of the Game Key Card for Nintendo consoles has already had a major impact on the industry: Macronix, manufacturer of ROM cartridges for Switch 1 and 2, will leave the business after a 39% drop in revenue generated from this type of product.

According to the company's latest fiscal report, only 5% of its revenue came from "old-fashioned" physical media—those that actually contain the game files inside.

The sharp drop is easily explained by the adoption of the Game Key Card: instead of containing a physical copy of the game, the cartridge only provides a digital version of the game to be downloaded onto that console, making manufacturing easier.

According to analyst David Gibson, who broke the news, this doesn't mean the end of physical media for Switch 1 and 2, as there are other manufacturers that supply Nintendo. Still, the expectation is that digital sales—whether via Game Key Card or platforms like the eShop —will continue to grow.