Small cap Immersion Corporation (NASDAQ: IMMR) rises as haptic technology can be added to a second major game console following success with another.
What happened: Immersion has a royalty agreement Sony Corporation (NYSE: SNE). The deal enables the company to use Immersion’s haptic technology in game and VR controllers, including the best-selling PlayStation 5.
Following the success of the PlayStation 5 and the strong reviews for the controller, Sony’s game competitor Microsoft Corporation (NASDAQ: MSFT) is considering adding haptic technology to controllers.
Microsoft has sent an Xbox console experience survey to its users asking questions about the controllers. Questions are being asked about whether the Xbox Series X feels the next generation and whether users are aware of the features on Playstation controllers that they want on Xbox controllers, according to TechRadar.
“I’m cheering for what they did to the controller. I think for all of us in the industry, we need to learn from each other and the innovation we all pay attention to, whether it’s the proliferation of a business model like Game Pass, or a controller technology, ‘said Phil Spencer, vice President of Microsoft, told The Verge. .
Related link: Immersion: the thing behind the thing for Playstation 5
Why it’s important: IGN points out that Xbox has added good features to other console controllers. The game publication called the PlayStation 5 controller one of the most impressive features of Sony’s new console, which scored it 9 out of 10.
“Microsoft’s interest in these questions suggests that they are at least considering upgrading the next generation of controllers in the future to fit Sony’s offer in the current generation,” IGN writes.
Haptic technology can be a major theme for video games going forward, as it connects users to the games and makes for a more interactive experience.
Several 2021 games such as “Returnal” and “Deathloop” utilize the haptic technology of the PS5 controller and make the game more interactive for users.
Throughout 2020, Immersion hinted that the new controller for the PlayStation 5 could lead to additional demand for its patents and products.
“We believe that Sony’s new controller will catalyze the increased market demand for advanced interactive haptic experiences, and this could lead to further opportunities for Immersion in the future,” the company said.
What’s next: Immersion is expected to announce fourth-quarter earnings in March. The revenue should look more closely at the revenue generated by Sony and may add more color to how much Immersion is sold as a royalty for each PlayStation 5 controller.
Immersion posted revenue of $ 7.6 million in the third quarter, compared to a $ 7.45 million street consensus. The fourth quarter of the past financial year was the largest in terms of revenue.
Benzinga’s name: We highlighted Immersion in July and December and mentioned how important the inclusion of PlayStation 5 was to the company. The agreement with Sony was a major catalyst and adding Microsoft could be just as valuable.
Shares of immersion rose 9.5% to $ 12.08 on Thursday. Shares have risen 46% over the past 52 weeks.
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