A while ago, Immersion Corporation was awarded damages of over $80 million in its patent infringement lawsuit against Sony (see our coverage here and here ). The lawsuit involved the force-feedback technology which Sony used in its PS2 controllers. Immersion also sought an injunction prohibiting Sony from making or selling related technologies in the US. Sony is currently appealing the injunction decision.
At the recent E3 convention, Sony announced that its next generation controllers would not include the rumble feature because of possible interference with the new controller's tilt sensors. This decision is not sitting well with gamers and industry insiders, who view the removal of force-feedback controllers as a step backward.
Immersion's President has stated publicly that Immersion is willing to help Sony with force-feedback technology that can co-exist with the tilt sensors, if Sony settles the patent litigation on Immersion's terms.
Coverage at http://www.gamasutra.com/features/20060517/murdey_01.shtml (Gamasutra)
and at http://www.gamesindustry.biz/content_page.php?aid=17141 (GamesIndustry.biz)