Lazy8s said:
The control for cost and use that Microsoft would want over technology they're including across millions of units of product and plan to include across millions more for years into the future is a lot more than is granted in a simple license. They couldn't afford to be at the mercy of licensee terms and potential renegotiation by Immersion sometime down the line, so they would seek ownership in the technology. Microsoft also then couldn't afford for Sony to outlast or outmuscle Immersion in the court proceedings defending their IP, so a MS investment into Immersion served both partners' interests with capital for the smaller company and control for the bigger.
Good answer but I have a problem with it. "They" couldn't afford to be at the mercy of licensee terms and potential renegotiation. They being MS the company with such a huge cash hoard as part of its profits that they have no problem snapping up any company that is a competitor, regardless of the industry, and the same company that has settled hundred's of millions of dollars in lawsuits previously.
They couldn't afford to be hurt by renegotiations that might force them to pay more down the road?
That's not a compelling argument at all.
The control for cost and use that Microsoft would want over technology they're including across millions of units of product and plan to include across millions more for years into the future is a lot more than is granted in a simple license.
BMW and Lockheed don't use the same technology across millions of units of products? Did MS buy the folks who supply the chips that power the Xbox? Nope... actually refresh my memory... what happened with that arbitration attempt to renegotiate the cost of those chips anyway?
Part of your answer is right looking at the lawsuit they did decide that control would be great, but they certainly weren't force to buy Immersion, just like they certained weren't forced to to word the terms of the Immersion/Sony lawsuit in to a clause describe exactly how funds would be exchanged etc.
Opportunity knocked they answered, but they weren't dragged kicking and screaming saying noooo to it.
As you said this was about control. I could care less about the acquisition MS has acquired company's that were competiting in industry's that it wanted to enter/dominate before, I just find the terms as reported in the quarterly report to be incredibly shitty. That's all.