Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2015	Feb. 18, 2016	Jun. 30, 2015
Document And Entity Information [Abstract]
Entity Registrant Name	IMMERSION CORP
Entity Central Index Key	0001058811
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		28,359,860
Trading Symbol	IMMR
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 229,858,038

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash and cash equivalents	$ 25,013	$ 14,380
Short-term investments	39,918	42,981
Accounts and other receivables (net of allowances for doubtful accounts of: $15 and $28, respectively)	1,213	3,021
Deferred income taxes	0	9,377
Prepaid expenses and other current assets	2,790	845
Total current assets	68,934	70,604
Property and equipment, net	4,589	1,207
Deferred income tax assets	24,633	25,419
Prepaid income taxes	6,995	0
Intangibles and other assets, net	264	291
Total assets	105,415	97,521
Current liabilities:
Accounts payable	650	669
Accrued compensation	4,840	1,906
Other current liabilities	2,999	2,225
Deferred revenue	6,696	7,779
Total current liabilities	15,185	12,579
Long-term deferred revenue	2,516	7,827
Other long-term liabilities	1,099	512
Total liabilities	$ 18,800	$ 20,918
Commitments and contingencies
Stockholders’ equity:
Common stock and additional paid-in capital – $0.001 par value; 100,000,000 shares authorized; 34,845,310 and 34,225,778 shares issued, respectively; 28,329,416 and 27,715,387 shares outstanding, respectively	$ 212,115	$ 204,876
Accumulated other comprehensive income	86	102
Accumulated deficit	(79,948)	(82,806)
Treasury stock at cost: 6,515,894 and 6,510,391 shares, respectively	(45,638)	(45,569)
Total stockholders’ equity	86,615	76,603
Total liabilities and stockholders’ equity	$ 105,415	$ 97,521

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2015	Dec. 31, 2014
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 15	$ 28
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	34,845,310	34,225,778
Common stock, shares outstanding (in shares)	28,329,416	27,715,387
Treasury stock, shares (in shares)	6,515,894	6,510,391

Consolidated Statements of Income and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Royalty and license	$ 61,677	$ 51,804	$ 46,154
Product sales	0	0	105
Development, services, and other	1,716	1,133	1,211
Total revenues	63,393	52,937	47,470
Costs and expenses:
Cost of revenues (exclusive of amortization of intangibles shown separately below)	440	460	462
Sales and marketing	14,674	10,896	9,338
Research and development	14,785	11,793	10,883
General and administrative	28,755	23,754	23,104
Amortization of intangibles	20	67	79
Total costs and expenses	58,674	46,970	43,866
Operating income	4,719	5,967	3,604
Interest and other income	177	580	179
Other expense	(447)	(228)	(111)
Income before provision for income taxes	4,449	6,319	3,672
Benefit (provision) for income taxes	(1,591)	(2,196)	36,483
Net income	$ 2,858	$ 4,123	$ 40,155
Basic net income per share (in dollars per share)	$ 0.10	$ 0.15	$ 1.42
Shares used in calculating basic net income per share (in shares)	28,097	28,246	28,190
Diluted net income per share (in dollars per shares)	$ 0.10	$ 0.14	$ 1.37
Shares used in calculating diluted net income per share (in shares)	29,015	29,144	29,338
Other comprehensive income (loss), net of tax
Change in unrealized gains (losses) on short-term investments	$ (16)	$ (10)	$ 3
Total other comprehensive income (loss)	(16)	(10)	3
Total comprehensive income	$ 2,842	$ 4,113	$ 40,158

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock and Additional Paid-In Capital	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Treasury Stock
Beginning balance at Dec. 31, 2012	$ 29,278	$ 186,822	$ 109	$ (127,084)	$ (30,569)
Beginning balance, shares at Dec. 31, 2012		32,278,330			4,982,744
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	40,155			40,155
Unrealized gain (loss) on available-for-sale securities, net of taxes	$ 3		3
Repurchase of stock, shares	0
Issuance of stock for ESPP purchase	$ 198	$ 198
Issuance of stock for ESPP purchase, shares		36,921
Exercise of stock options	6,393	$ 6,393
Exercise of stock options, shares		956,633
Release of restricted stock units and awards, including related stock compensation	3,482	$ 3,482
Release of restricted stock units and awards, shares		347,882
Stock based compensation for stock options	1,162	$ 1,162
Ending balance at Dec. 31, 2013	80,671	$ 198,057	112	(86,929)	$ (30,569)
Ending balance, shares at Dec. 31, 2013		33,619,766			4,982,744
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	4,123			4,123
Unrealized gain (loss) on available-for-sale securities, net of taxes	(10)		(10)
Repurchase of stock	$ (15,000)				$ (15,000)
Repurchase of stock, shares	1,527,647				1,527,647
Issuance of stock for ESPP purchase	$ 381	$ 381
Issuance of stock for ESPP purchase, shares		38,298
Exercise of stock options	1,304	$ 1,304
Exercise of stock options, shares		205,744
Release of restricted stock units and awards, including related stock compensation	3,976	$ 3,976
Release of restricted stock units and awards, shares		361,970
Tax benefit/(deficiency) from the stock incentive plans	(161)	$ (161)
Stock based compensation for stock options	1,319	1,319
Ending balance at Dec. 31, 2014	76,603	$ 204,876	102	(82,806)	$ (45,569)
Ending balance, shares at Dec. 31, 2014		34,225,778			6,510,391
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,858			2,858
Unrealized gain (loss) on available-for-sale securities, net of taxes	(16)		(16)
Repurchase of stock	0				$ 0
Repurchase of stock, shares					0
Issuance of stock for ESPP purchase	367	$ 367
Issuance of stock for ESPP purchase, shares		45,820
Exercise of stock options	1,561	$ 1,630			$ (69)
Exercise of stock options, shares		239,071			5,503
Release of restricted stock units and awards, including related stock compensation	3,059	$ 3,059
Release of restricted stock units and awards, shares		334,641
Tax benefit/(deficiency) from the stock incentive plans	(228)	$ (228)
Stock based compensation for stock options	2,411	2,411
Ending balance at Dec. 31, 2015	$ 86,615	$ 212,115	$ 86	$ (79,948)	$ (45,638)
Ending balance, shares at Dec. 31, 2015		34,845,310			6,515,894

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 2,858	$ 4,123	$ 40,155
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property and equipment	996	500	584
Amortization of intangibles	20	67	79
Stock-based compensation	5,470	5,295	4,644
Allowance for doubtful accounts	(6)	16	8
Loss on disposal of equipment	10	52	11
Changes in operating assets and liabilities:
Accounts and other receivables	1,814	(2,439)	1,272
Inventories	0	0	141
Deferred income taxes	9,935	1,893	(36,850)
Prepaid income taxes	(6,995)	0	0
Prepaid expenses and other current assets	(1,945)	(155)	16
Other assets	(36)	(39)	(152)
Accounts payable	(19)	(10)	341
Accrued compensation and other current liabilities	3,750	(2,241)	2,788
Deferred revenue	(6,394)	(6,755)	8,206
Other long-term liabilities	587	(16)	(91)
Net cash provided by operating activities	10,045	291	21,152
Cash flows provided by (used in) investing activities:
Purchases of short-term investments	(44,910)	(42,953)	(94,931)
Proceeds from maturities of short-term investments	48,000	57,000	77,000
Purchases of property and equipment	(4,430)	(779)	(234)
Net cash provided by (used in) investing activities	(1,340)	13,268	(18,165)
Cash flows provided by (used in) financing activities:
Issuance of common stock under employee stock purchase plan	367	381	198
Exercise of stock options	1,561	1,304	6,393
Purchases of treasury stock	0	(15,000)	0
Net cash provided by (used in) financing activities	1,928	(13,315)	6,591
Net increase in cash and cash equivalents	10,633	244	9,578
Cash and cash equivalents:
Beginning of year	14,380	14,136	4,558
End of year	25,013	14,380	14,136
Supplemental disclosure of cash flow information:
Cash paid for taxes	156	47	18
Supplemental disclosure of noncash operating, investing, and financing activities:
Amounts accrued for property and equipment	18	60	24
Cashless option exercise under company stock plan	69	0	0
Release of Restricted Stock Units and Awards under company stock plan	$ 3,059	$ 3,976	$ 3,482

Significant Accounting Policies

12 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Significant Accounting Policies

Description of Business

Immersion Corporation (the “Company”) was incorporated in 1993 in California and reincorporated in Delaware in 1999. The company focuses on the creation, design, development, and licensing of innovative haptic technologies that allow people to use their sense of touch more fully as they engage with cutting-edge products and experience the digital world around them. The Company has adopted a “hybrid” business model, under which it provides advanced tactile software, related tools, and technical assistance to certain customers; and offers licenses to the Company's patented intellectual property (“IP”) to other customers.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of Immersion Corporation and its wholly-owned subsidiaries, Immersion Canada Corporation; Immersion International, LLC; Immersion Medical, Inc.; Immersion Japan K.K.; Immersion Ltd.; Immersion Software Ireland Ltd.; Haptify, Inc.; Immersion (Shanghai) Science & Technology Company, Ltd.; and Immersion Technology International Ltd. All intercompany accounts, transactions, and balances have been eliminated in consolidation. The Company has prepared the accompanying consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”).

Cash Equivalents

The Company considers all highly liquid instruments purchased with an original or remaining maturity of less than three months at the date of purchase to be cash equivalents.

Short-term Investments

The Company’s short-term investments consist primarily of U.S treasury bills and government agency securities purchased with an original or remaining maturity of greater than 90 days on the date of purchase. The Company classifies debt securities with readily determinable market values as “available-for-sale.” Even though the stated maturity dates of these debt securities may be one year or more beyond the balance sheet date, the Company has classified all debt securities as short-term investments as they are reasonably expected to be realized in cash or sold within one year. These investments are carried at fair market value with unrealized gains and losses considered to be temporary in nature reported as a separate component of other comprehensive income (loss) within stockholders’ equity.

The Company recognizes an impairment charge in the consolidated statement of income when a decline in value is judged to be other than temporary based on the specific identification method. Other-than-temporary impairment charges may exist when the Company has the intent to sell the security, will more likely than not be required to sell the security, or does not expect to recover the principal.

Property and Equipment

Property is stated at cost and is depreciated using the straight-line method over the estimated useful life of the related asset. The estimated useful lives are typically as follows:



Computer equipment and purchased software	3 years
Machinery and equipment	3-5 years
Furniture and fixtures	5 years

Leasehold improvements are amortized over the shorter of the lease term or their estimated useful life.

Long-lived Assets

The Company evaluates its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of that asset may not be recoverable. An impairment loss would be recognized when the sum of the undiscounted future net cash flows expected to result from the use of the asset and its eventual disposition is less than its carrying amount. Measurement of an impairment loss for long-lived assets and certain identifiable intangible assets that management expects to hold and use is based on the fair value of the asset.

Revenue Recognition

The Company recognizes revenues in accordance with applicable accounting standards, including ASC 605-10-S99, “Revenue Recognition” (“ASC 605-10-S99”); ASC 605-25, “Multiple Element Arrangements” (“ASC 605-25”); and ASC 985-605, “Software-Revenue Recognition” (“ASC 985-605”). The Company derives its revenues from two principal sources: royalty and license fees, and development contract and service fees. As described below, management judgments, assumptions, and estimates must be made and used in connection with the revenue recognized in any accounting period. Material differences may result in the amount and timing of revenue for any period based on the judgments and estimates made by management. Specifically, in connection with each transaction, the Company must evaluate whether: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) the fee is fixed or determinable, and (iv) collectibility is probable. The Company applies these criteria as discussed below.


•	Persuasive evidence of an arrangement exists. For a license arrangement, the Company requires a written contract, signed by both the customer and the Company.


•	Delivery has occurred. The Company delivers software and product to customers physically and also delivers software electronically. For electronic deliveries, delivery occurs when the Company provides the customer access codes or “keys” that allow the customer to take immediate possession of the software.


•	The fee is fixed or determinable. The Company’s arrangement fee is based on the use of standard payment terms, which are those that are generally offered to the majority of customers. For transactions involving extended payment terms, the Company deems these fees not to be fixed or determinable for revenue recognition purposes and revenue is deferred until the fees become due and payable.

•

Collectibility is probable. To recognize revenue, the Company must judge collectibility of fees, which is done on a customer-by-customer basis pursuant to the Company’s credit review policy. The Company typically sells to customers with whom there is a history of successful collection. For new customers, the Company evaluates the customer’s financial condition and ability to pay. If it is determined that collectibility is not probable based upon the credit review process or the customer’s payment history, revenue is recognized when payment is received.

Royalty and license revenue — The Company licenses its patents and software to customers in a variety of industries such as mobility, gaming, automotive, and medical devices. Certain of these are variable fee arrangements where the royalties earned by the Company are based on unit or sales volumes of the respective licensees. The Company also enters into fixed license fee arrangements. The terms of the royalty agreements generally require licensees to give notification of royalties due to the Company within 30 – 45 days of the end of the quarter during which their related sales occur. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met. Certain royalties are based upon customer shipments or revenues and could be subject to change and may result in out of period adjustments. The Company recognizes fixed license fee revenue for licenses when earned under the terms of the agreements, which generally results in recognition on a straight-line basis over the expected term of the license.

Development, services, and other revenue — Development, services, and other revenue are composed of engineering services (engineering services and/or development contracts), and in limited cases, post contract customer support (“PCS”). Engineering services revenues are recognized under the proportional performance accounting method based on physical completion of the work to be performed or completed performance method. A provision for losses on contracts is made, if necessary, in the period in which the loss becomes probable and can be reasonably estimated. Revisions in estimates are reflected in the period in which the conditions become known. To date, such losses have not been significant. Revenue from PCS is typically recognized over the period of the ongoing obligation, which is generally consistent with the contractual term.

Multiple element arrangements — The Company enters into multiple element arrangements in which customers purchase time-based non-exclusive licenses that cannot be resold to others, which include a combination of software and/or IP licenses, engineering services, and in limited cases PCS. For arrangements that are software based and include software and engineering services, the services are generally not essential to the functionality of the software, and customers may purchase engineering services to facilitate the adoption of the Company’s technology, but they may also decide to use their own resources or appoint other engineering service organizations to perform these services. For arrangements that are in substance subscription arrangements, the entire arrangement fee is recognized ratably over the contract term, subject to any limitations related to extended payment terms. For arrangements involving upfront fees for services and royalties earned by the Company based on unit or sales volumes of the respective licensees, and the services are performed ratably over the arrangement or are front-end loaded, the upfront fees are recognized ratably over the contract term and royalties based on unit or sales volume are recognized when they become fixed and determinable. As the Company is unable to reliably estimate the licensees’ sales in any given quarter to determine the royalties due to it, the Company recognizes per unit or sales volume driven royalty revenues based on royalties reported by licensees and when all revenue recognition criteria are met.

Advertising

Advertising costs (including obligations under cooperative marketing programs) are expensed as incurred and included in sales and marketing expense. Advertising expense was as follows:



	Year ended December 31,
	2015		2014		2013
	(In thousands)
Advertising expense	$	265	$	344	$	322

Research and Development

Research and development costs are expensed as incurred. The Company has sometimes generated revenues from development contracts with commercial customers that have enabled it to accelerate its own product development efforts. Such development revenues have only partially funded the Company’s product development activities, and the Company generally retains ownership of the products developed under these arrangements. As a result, the Company classifies all development costs related to these contracts as research and development expenses.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under this method, income tax expense is recognized for the amount of taxes payable or refundable for the current year. In addition, deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities, and for operating losses and tax credit carryforwards. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized and are reversed at such time that realization is believed to be more likely than not.

Software Development Costs

Costs for the development of new software products and substantial enhancements to existing software products are expensed as incurred until technological feasibility has been established, at which time any additional costs would be capitalized. The Company considers technological feasibility to be established upon completion of a working model of the software. Because the Company believes its current process for developing software is essentially completed concurrently with the establishment of technological feasibility, no costs have been capitalized to date.

Stock-based Compensation

Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense on a straight-line basis over the requisite service period, which is the vesting period. See Note 9 for further information regarding the Company’s stock-based compensation assumptions and expenses.

Comprehensive Income

Comprehensive income includes net income as well as other items of comprehensive income or loss. The Company’s other comprehensive income (loss) consists of foreign currency translation adjustments and unrealized gains and losses on short term investments, net of tax.

Use of Estimates

The preparation of consolidated financial statements and related disclosures in accordance with GAAP and pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include valuation of short-term investments, income taxes including uncertain tax provisions, revenue recognition, stock-based compensation, contingent liabilities from litigation, and accruals for other liabilities. Actual results may differ materially from those estimates.

Concentration of Credit Risks

Financial instruments that potentially subject the Company to a concentration of credit risk principally consist of cash, cash equivalents, short term investments, and accounts receivable. The Company invests primarily in money market accounts and highly liquid debt instruments purchased with an original or remaining maturity of greater than 90 days on the date of purchase. Deposits held with banks may exceed the amount of insurance provided on such deposits. Generally, these deposits may be redeemed upon demand. The Company licenses technology primarily to companies in North America, Europe, and Asia. To reduce credit risk, management performs periodic credit evaluations of its customers’ financial condition. The Company maintains reserves for estimated potential credit losses, but historically has not experienced any significant losses related to individual customers or groups of customers in any particular industry or geographic area.

Certain Significant Risks and Uncertainties

The Company operates in multiple industries and, accordingly, can be affected by a variety of factors. For example, management of the Company believes that changes in any of the following areas could have a negative effect on the Company in terms of its future financial position and results of operations: the mix of revenues; the loss of significant customers; fundamental changes in the technologies underlying the Company’s and its licensees’ products; market acceptance of the Company’s and its licensees’ products under development; development of sales channels; litigation or other claims in which the Company is involved; the ability to successfully assert its patent rights against others; the impact of changing economic conditions; the hiring, training, and retention of key employees; successful and timely completion of product and technology development efforts; and new product or technology introductions by competitors.

Fair Value of Financial Instruments

Financial instruments consist primarily of cash equivalents, short-term investments, accounts receivable and accounts payable. Cash equivalents and short term investments are stated at fair value based on quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency. The recorded cost of accounts receivable and accounts payable approximate the fair value of the respective assets and liabilities.

Foreign Currency Translation

The functional currency of the Company’s foreign subsidiaries is U. S. dollars. Accordingly, gains and losses from the translation of the financial statements of the foreign subsidiaries and foreign currency transaction gains and losses are included in earnings.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-9 “Revenue from Contracts with Customers: Topic 606” (“ASU 2014-9”), which will supersede the current revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance. The core principle of ASU 2014-9 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the guidance requires improved disclosures to help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU No. 2015-14 “Revenue from Contracts with Customers: Deferral of the Effective Date”, which deferred the effective date of ASU 2014-09 for periods beginning after December 15, 2016 to December 15, 2017, with early adoption permitted but not earlier than the original effective date. Accordingly, ASU 2014-09 is effective for the Company and is expected to be adopted in the first quarter of fiscal 2018. The standard permits companies to either apply the requirements retrospectively to all prior periods presented, or apply the requirements in the year of adoption through a cumulative adjustment, and the Company is in the process of determining the method of adoption and evaluating the impact on its consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17 “Balance Sheet Classification of Deferred Taxes” (“ASU 2015-17”) that requires companies to classify all deferred tax assets and liabilities as noncurrent on the balance sheet instead of separating deferred taxes into current and noncurrent amounts. In addition, companies will no longer allocate valuation allowances between current and noncurrent deferred tax assets because those allowances also will be classified as noncurrent. ASU 2015-17 is effective for reporting periods beginning after December 15, 2016 with early adoption permitted for any interim or annual periods that have not been issued. The Company has decided to adopt ASU 2015-17 prospectively for the fourth quarter of fiscal year 2015 and as such, previously issued balance sheets were not retrospectively adjusted. The adoption resulted in a $2.9 million classification from current deferred income taxes to noncurrent.

Fair Value Disclosures

12 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Cash Equivalents and Short-term Investments

The financial instruments of the Company measured at fair value on a recurring basis are cash equivalents and short-term investments.

The Company’s fixed income available-for-sale securities consist of high quality, investment grade securities. The Company values these securities based on pricing from pricing vendors, who may use quoted prices in active markets for identical assets (Level 1) or inputs other than quoted prices that are observable either directly or indirectly (Level 2) in determining fair value.

The types of instruments valued based on quoted market prices in active markets include most money market securities. Such instruments are generally classified within Level 1 of the fair value hierarchy.

The types of instruments valued based on quoted prices in markets that are less active, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency are generally classified within Level 2 of the fair value hierarchy and include most U.S. treasury securities and most investment-grade corporate commercial paper.

The types of instruments valued based on unobservable inputs which reflect the reporting entity’s own assumptions or data that market participants would use in valuing an instrument are generally classified within Level 3 of the fair value hierarchy.

Financial instruments measured at fair value on a recurring basis as of December 31, 2015 and December 31, 2014 are classified based on the valuation technique in the table below:



	December 31, 2015						Total
	Fair value measurements using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
U.S. Treasury securities	$	—	$	39,918	$	—	$	39,918
Money market funds	14,032		—		—		14,032
Total assets at fair value	$	14,032	$	39,918	$	—	$	53,950

The above table excludes $11.0 million of cash held in banks.



	December 31, 2014						Total
	Fair value measurements using
	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(In thousands)
Assets:
U.S. Treasury securities	$	—	$	42,981	$	—	$	42,981
Money market funds	11,524		—		—		11,524
Total assets at fair value	$	11,524	$	42,981	$	—	$	54,505

The above table excludes $2.9 million of cash held in banks.

U.S. Treasury securities are classified as short-term investments, and money market accounts are classified as cash equivalents on the Company’s consolidated balance sheets.

Short-term Investments



	December 31, 2015
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses			Fair Value
	(In thousands)
U.S. Treasury securities	$	39,933	$	—	$	(15	)	$	39,918
Total	$	39,933	$	—	$	(15	)	$	39,918



	December 31, 2014
	Amortized Cost		Gross Unrealized Holding Gains		Gross Unrealized Holding Losses		Fair Value
	(In thousands)
U.S. Treasury securities	$	42,980	$	1	$	—	$	42,981
Total	$	42,980	$	1	$	—	$	42,981

The contractual maturities of the Company’s available-for-sale securities on December 31, 2015 and December 31, 2014 were all due within one year. There were no transfers of instruments between Level 1 and 2 during the years ended December 31, 2015 and 2014.

Accounts and Other Receivables

12 Months Ended

Dec. 31, 2015

Receivables [Abstract]

Accounts and Other Receivables



	December 31,
	2015		2014
	(In thousands)
Trade accounts receivable	$	935	$	2,708
Receivables from vendors and other	278		313
Accounts and other receivables	$	1,213	$	3,021

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Property and Equipment

12 Months Ended

Dec. 31, 2015

Property, Plant and Equipment [Abstract]

Property and Equipment



	December 31,
	2015			2014
	(In thousands)
Computer equipment and purchased software	$	3,564		$	3,418
Machinery and equipment	923			688
Furniture and fixtures	1,361			852
Leasehold improvements	3,838			1,295
Total	9,686			6,253
Less accumulated depreciation	(5,097		)	(5,046		)
Property and equipment, net	$	4,589		$	1,207

Long-term Deferred Revenue

12 Months Ended

Dec. 31, 2015

Deferred Revenue Disclosure [Abstract]

Long-term Deferred Revenue

Long-term deferred revenue consisted of the following:



	December 31,
	2015		2014
	(In thousands)
Deferred revenue for Sony Computer Entertainment	$	1,263	$	7,051
Other deferred revenue	1,253		776
Long-term deferred revenue	$	2,516	$	7,827

Deferred revenue for Sony Computer Entertainment represents deferred license revenue where payments have been received in advance of revenue recognition.

Commitments

12 Months Ended

Dec. 31, 2015

Commitments and Contingencies Disclosure [Abstract]

Commitments

The Company leases several of its facilities under noncancelable operating lease arrangements that expire at various dates through 2023.

On November 12, 2014, the Company entered into an amendment to the lease of its primary facilities. The amendment terminated the prior lease of a San Jose, California facility of approximately 33,000 square feet as of May 2015, which had been scheduled to expire in December 2016. It also began the current lease of a San Jose, California facility of approximately 42,000 square feet as of February 2015. The lease contains provisions for leasehold improvement incentives and expires as of April 2023 and can be extended to April 2028. Minimum future lease payments obligations are as follows:



	Operating Leases
	(In thousands)
2016	934
2017	841
2018	947
2019	843
2020	868
Thereafter	2,124
Total	$	6,557

Rent expense was as follows:



	Year ended December 31,
	2015		2014		2013
	(In thousands)
Rent expense	$	1,291	$	742	$	549

Stock-based Compensation

12 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-based Compensation

The Company’s equity incentive program is a long-term retention program that is intended to attract, retain, and provide incentives for talented employees, consultants, officers, and directors and to align stockholder and employee interests. The Company may grant options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares, performance units, and other stock-based or cash-based awards to employees, officers, directors, and consultants. Under these programs, stock options may be granted at prices not less than the fair market value on the date of grant for stock options. These options generally vest over 4 years and expire from 5 to 10 years from the date of grant. In addition to time based vesting, market condition based options are subject to a market condition: the closing price of the Company stock must exceed a certain level for a number of trading days within a specified timeframe or the options will be cancelled before their expiration. Restricted stock generally vests over one year. RSUs generally vest over 3 years. Awards granted other than an option or stock appreciation right shall reduce the common stock shares available for grant by 1.75 shares for every share issued.



	December 31,
	2015
Common stock shares available for grant	1,322,579
Standard and market condition based stock options outstanding	3,796,533
Restricted stock awards outstanding	21,356
Restricted stock units outstanding	487,423

Employee Stock Purchase Plan

The Company has an Employee Stock Purchase Plan (“ESPP”). Under the ESPP, eligible employees may purchase common stock through payroll deductions at a purchase price of 85% of the lower of the fair market value of the Company’s stock at the beginning of the offering period or the purchase date. Participants may not purchase more than 2,000 shares in a six-month offering period or purchase stock having a value greater than $25,000 in any calendar year as measured at the beginning of the offering period. A total of 1,000,000 shares of common stock have been reserved for issuance under the ESPP. As of December 31, 2015, 603,558 shares had been purchased since the inception of the ESPP in 1999. Under ASC 718-10, the ESPP is considered a compensatory plan and the Company is required to recognize compensation cost related to the fair value of the award purchased under the ESPP. Shares purchased under the ESPP for the year ended December 31, 2015 are listed below. Shares purchased under the ESPP for the year ended December 31, 2014 are 38,298. The intrinsic value listed below is calculated as the difference between the market value on the date of purchase and the purchase price of the shares.



	Year Ended December 31, 2015
Shares purchased under ESPP	45,820
Average price of shares purchased under ESPP	$	8.00
Intrinsic value of shares purchased under ESPP	$	160,000

Summary of Standard Stock Options

The following table sets forth the summary of standard stock option activity under the Company’s stock option plans for the years ended December 31, 2015, 2014, and 2013:



	Number of Shares		Weighted Average Exercise Price		Weighted Average Fair Value Of Options Granted		Aggregate Intrinsic Value of Options Exercised (In thousands)
Outstanding at January 1, 2013	3,155,631		$	6.65
Granted	1,058,700		10.20		$	5.63
Exercised	(956,633	)	6.68				$	5,774
Forfeited	(10,531	)	8.24
Expired	(20,000	)	9.01
Outstanding at December 31, 2013	3,227,167		7.78
Granted	604,620		10.32		4.93
Exercised	(205,744	)	6.34				1,125
Forfeited	(102,454	)	7.20
Expired	(37,432	)	10.19
Outstanding at December 31, 2014	3,486,157		8.30
Granted	525,840		10.15		4.56
Exercised	(239,071	)	6.82				1,186
Forfeited	(116,425	)	12.38
Expired	(59,968	)	13.75
Outstanding at December 31, 2015	3,596,533		8.45

The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of the Company’s common stock for the options that were in-the-money.

Information regarding standard stock options outstanding at December 31, 2015, 2014, and 2013 is summarized below:



	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value (In millions)
December 31, 2013
Options outstanding	3,227,167	$	7.78	5.46	$	9.9
Options vested and expected to vest using estimated forfeiture rates	2,994,044	7.61		5.41	9.6
Options exercisable	1,774,546	6.67		4.95	7.5
December 31, 2014
Options outstanding	3,486,157	$	8.30	4.85	$	6.6
Options vested and expected to vest using estimated forfeiture rates	3,319,308	8.21		4.80	6.6
Options exercisable	2,023,024	7.18		4.26	6.0
December 31, 2015
Options outstanding	3,596,533	$	8.45	4.23	$	12.5
Options vested and expected to vest using estimated forfeiture rates	3,452,487	8.36		4.16	12.3
Options exercisable	2,252,744	7.59		3.56	9.9

Additional information regarding standard options outstanding as of December 31, 2015 is as follows:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$2.70 - $3.72	17,938	3.19	$	2.75	17,938	$	2.75
3.85 - 3.85	600,000	3.87	3.85		600,000	3.85
4.24 - 6.12	493,241	2.92	5.94		464,786	5.93
6.23 - 8.09	410,349	5.35	7.52		167,009	6.85
8.18 - 9.19	440,433	4.35	8.90		236,822	8.85
9.20 - 9.20	44,300	2.54	9.20		44,300	9.20
9.53 - 9.53	810,000	4.18	9.53		384,374	9.53
9.65 - 12.20	392,427	5.48	11.50		138,690	11.49
12.22 - 15.12	287,845	5.08	13.16		98,825	14.32
16.57 - 16.57	100,000	1.74	16.57		100,000	16.57
$2.70 - $16.57	3,596,533	4.23	$	8.45	2,252,744	$	7.59

Summary of Market Condition Based Stock Options

In 2014, the Company began granting options that are subject to both time-based vesting and a market condition. For these options, the closing price of the Company stock must exceed a certain level for a number of trading days within a specified timeframe or the options will be cancelled before the seven year life of the options. The following table sets forth the summary of the market condition based option activity under the Company’s stock option plans for the years ended December 31, 2015 and 2014:



	Number of Shares	Weighted Average Exercise Price		Weighted Average Fair Value Of Options Granted	Aggregate Intrinsic Value of Options Exercised(In thousands)
Outstanding at January 1, 2014	—	$	—
Granted	50,000	11.94		5.71
Exercised	—	—			$	—
Forfeited	—	—
Expired	—	—
Outstanding at December 31, 2014	50,000	11.94
Granted	150,000	8.09		3.64
Exercised	—	—			—
Forfeited	—	—
Expired	—	—
Outstanding at December 31, 2015	200,000	9.05

Information regarding these market condition based stock options outstanding at December 31, 2015 and 2014 is summarized below:



	Number of Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value(In millions)
December 31, 2014
Options outstanding	50,000	$	11.94	6.15	$	—
Options vested and expected to vest using estimated forfeiture rates	45,430	11.94		6.15	—
Options exercisable	—	—		—	—
December 31, 2015
Options outstanding	200,000	$	9.05	5.92	$	0.5
Options vested and expected to vest using estimated forfeiture rates	184,125	9.12		5.90	0.5
Options exercisable	—	—		—	—

Additional information regarding market condition based stock options outstanding as of December 31, 2015 is as follows:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted Average Remaining Contractual Life (Years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$8.09 - $11.94	200,000	5.92	$	9.05	—	$	—

Summary of Restricted Stock Units

RSU activity for the years ended December 31, 2015, 2014, and 2013 was as follows:



	Number of Shares		Weighted Average Grant Date Fair Value		Fair Value of Released RSU’s (In thousands)
Outstanding at January 1, 2013	708,651
Awarded	294,150		$	7.12
Released	(303,882	)			$	2,806
Forfeited	(30,863	)
Outstanding at December 31, 2013	668,056
Awarded	265,630		11.35
Released	(317,970	)			3,491
Forfeited	(50,825	)
Outstanding at December 31, 2014	564,891
Awarded	281,290		8.16
Released	(299,277	)			2,626
Forfeited	(59,481	)
Outstanding at December 31, 2015	487,423

Information regarding RSU’s at December 31, 2015, 2014, and 2013 is summarized below:



	Number of Shares	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value(In millions)		Fair Value(In millions)
December 31, 2013
RSUs outstanding	668,056	0.91	$	6.9	$	6.9
RSUs vested and expected to vest using estimated forfeiture rates	583,711	0.89	6.1
December 31, 2014
RSUs outstanding	564,891	0.84	$	5.3	$	5.3
RSUs vested and expected to vest using estimated forfeiture rates	502,411	0.80	4.8
December 31, 2015
RSUs outstanding	487,423	0.90	$	5.7	$	5.7
RSUs vested and expected to vest using estimated forfeiture rates	414,934	0.87	4.8

The aggregate intrinsic value is calculated as the market value as of the end of the reporting period.

Summary of Restricted Stock Awards

Restricted stock award activity for the years ended December 31, 2015, 2014, and 2013 was as follows:



	Number of Shares		Weighted Average Grant Date Fair Value		Total Fair Value of Awards Released (In thousands)
Outstanding at January 1, 2013	44,000		$	5.34
Awarded	44,000		14.09
Released	(44,000	)	5.34		$	676
Forfeited	—
Outstanding at December 31, 2013	44,000		14.09
Awarded	35,364		10.97
Released	(44,000	)	14.09		483
Forfeited	—
Outstanding at December 31, 2014	35,364		10.97
Awarded	21,356		12.26
Released	(35,364	)	10.97		434
Forfeited	—
Outstanding at December 31, 2015	21,356		12.26

Stock-based Compensation

Valuation and amortization methods — The Company uses the Black-Scholes-Merton option pricing model (“Black-Scholes model”), single-option approach to determine the fair value of standard stock options and ESPP shares. All share-based payment awards are amortized on a straight-line basis over the requisite service periods of the awards, which are generally the vesting periods. Stock-based compensation expense recognized at fair value includes the impact of estimated forfeitures. The Company estimates future forfeitures at the date of grant and revises the estimates if necessary, in subsequent periods if actual forfeitures differ from these estimates. The determination of the fair value of share-based payment awards on the date of grant using an option pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include actual and projected employee stock option exercise behaviors that impact the expected term, the Company’s expected stock price volatility over the term of the awards, risk-free interest rate, and expected dividends.

Expected term — The Company estimates the expected term of options granted by calculating the average term from the Company’s historical stock option exercise experience. The expected term of ESPP shares is the length of the offering period. The Company used the simplified method approved by the SEC to determine the expected term for options granted prior to December 31, 2007.

Expected volatility — The Company estimates the volatility of its common stock taking into consideration its historical stock price movement and its expected future stock price trends based on known or anticipated events.

Risk-free interest rate — The Company bases the risk-free interest rate that it uses in the option pricing model on U.S. Treasury zero-coupon issues with remaining terms similar to the expected term on the options.

Expected dividend — The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option-pricing model.

Forfeitures — The Company is required to estimate future forfeitures at the time of grant and revise those estimates in subsequent periods if actual forfeitures differ from those estimates. The Company uses historical data to estimate pre-vesting option forfeitures and records stock-based compensation expense only for those awards that are expected to vest.

The Company uses the Monte-Carlo Simulation model to value the stock options with a market condition. Valuation techniques such as a Monte-Carlo Simulation model have been developed to value path-dependent awards. The Monte-Carlo Simulation model is a generally accepted statistical technique used, in this instance, to simulate a range of future stock prices for the Company.

The assumptions used to value option grants under the Company’s stock plans are as follows:



	Standard Stock Options
	2015	2014		2013
Expected life (in years)	4.7	4.7	<