Small cap Immersion Corporation (NASDAQ: IMMR) is growing as its haptic technology can be added to a second major gaming console after its success with another.
What happened: Immersion has a royalty agreement with Sony Corporation (NYSE: SNE). The deal allows the company to use Immersion’s haptic technology in games and virtual reality controls, including the PlayStation 5, which already sells a lot.
After the success of the PlayStation 5 and strong criticism of the controller, Sony’s gaming rival Microsoft Corporation (NASDAQ: MSFT) is considering adding haptic technology to the controllers.
Microsoft sent its users a survey about the Xbox console experience that asks questions about the controllers. The questions ask whether the Xbox Series X looks next-generation and whether users are aware of the features of Playstation controllers who want to be on Xbox controllers, according to TechRadar.
“I applaud what they did to the controller. I think for all of us in the industry, we should learn from each other and from the innovation that we all promote, whether in the distribution of business models like Game Pass or control technology, ”said Microsoft vice president of games, Phil Spencer , to The Verge.
Related link: Immersion: the thing behind the Playstation 5 thing
Because it’s important: The Xbox has a history of adding features well received on other console controllers to its own, says IGN. Game publishing ranked the PlayStation 5 controller as one of the most impressive features of Sony’s new console, scoring it with 9 points out of 10.
“Microsoft’s interest in these issues suggests that they are at least thinking about updating next generation controllers in the future, to align with Sony’s offering in the current generation,” writes IGN.
Tactile technology can be an important theme for video games, as it connects users to games and makes the experience more interactive.
Several games from 2021, such as “Returnal” and “Deathloop”, are taking advantage of the haptic technology of the PS5 controller and making the game more interactive for users.
Immersion suggested throughout 2020 that the new controller for the PlayStation 5 could lead to additional demand for its patents and products.
“We believe that the new controller from Sony will catalyze increased market demand for advanced interactive haptic experiences and this could lead to additional immersion opportunities in the future,” said the company.
What is the next: Immersion is expected to announce fourth quarter earnings in March. The earnings should provide a better view of the revenue generated by Sony and can provide more information about how much Immersion receives as royalties for each PlayStation 5 controller sold.
Immersion reported revenue of $ 7.6 million against the $ 7.45 million street consensus in the third quarter. The fourth quarter of the last fiscal year was the largest for the company in terms of revenue.
Benzinga’s opinion: We highlighted Immersion in July and December and mentioned the importance of including the PlayStation 5 for the company. The deal with Sony was a great catalyst and adding Microsoft to the group could be just as valuable.
Immersion shares closed Thursday with a 9.5% rise to $ 12.08. The shares have risen 46% in the past 52 weeks.
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