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Macronix, the main supplier of ROM chips used in Nintendo game cartridges, announced that production of these chips has come to an end and that it is beginning to scale back its gaming-sector operations. ROM production fell by 39% last year and now accounts for about 5% of the company’s business. A shrinking pool of suppliers could raise cartridge manufacturing costs and the prices of physical games, although Nintendo has said it has no near-term plans to stop producing them. Digital software accounts for 61.5% of Nintendo’s business, which could reduce its reliance on physical copies.
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