Sony Computer Entertainment, Inc. v. Connectix Corp.
Connectix's Virtual Game Station was a huge hit with Macintosh users when it was released in 1999. Before VGS, the number of computer games playable on the Apple platform was small. With Connectix's product, however, this number was greatly expanded.
The Sony PlayStation was originally produced in conjunction with Nintendo as a rival to Sega's Genesis CD video game console. However, after the product had been developed, Nintendo backed out of the deal, leaving Sony with a prototype CD-ROM based game console. After further development, Sony named it the PlayStation and released to compete with the Nintendo 64 and Sega Saturn. Over time, the PlayStation would sell more than 50 million units, compared with Nintendo 64's 30 million.
After Connectix won its court battle, Sony decided to buy the rights to VGS in 2001, and promptly shut down production of the product. This was not the only product Connectix was able to sell to a competitor. Connectix was famous for its VirtualPC line of products, that allowed Macintosh and Linux users to run Windows-based programs. Microsoft, worried that such a product would help expand the use of Linux, bought the technology. VirtualPC was not ported over from PowerPC to Intel-based Macs, and therefore has now been discontinued.
After this sale, Connectix closed down in the August of 2003.