Sony settles with Immersion, Playstation 3 shares on the rise

Sony Corp (NYSE: SNE) has settled its lawsuit with Immersion (hat tip to rikitikitik), the company that owns patents on rumble technology. The parties have entered into a business agreement in which Immersion will provide rumble technology for PlayStation products. This paves the way for Sony to remedy one of the strongest criticisms for the PS3. As a result, PlayStation 3 (PS3) shares increased 70.0 DKP (1.59%) to 4,480.00 DKP, translating into a 700,000-unit rise in the global sales forecast to 44.8 million units.

The stock still faces downward pressure from the recent announcement that PS3s in PAL regions will lack hardware for backward compatibility (ability to play PS2 games) and instead will rely on software emulation (hat tip to zukaus). However, PS3 shares may find additional support from Phil Harrison's recent comments that the PS3 will one day feature DVD upscaling (hat tip to csinning).