Havok - What is it? Why did Microsoft Buy it?

Havok is a software technology company formed in Dublin in 1998. The company specialises in creating middle ware that incorporates physics and all of the wonders that includes into various technologies, mostly video games.
If you've played a video game in recent years, there is a high chance that Havok's physics engine is incorporated somewhere in the code. In fact, its been in over 600 video games.

Above is a recent example of Havok technology that has been developed, uploaded on the official Havok channel itself.  As you can see it is quite impressive, incorporating brittle fracture and plastic deformation in a single interconnected vehicle.

So it should come as no surprise that Microsoft have decided to acquire the company (who were previously acquired by software giant Intel in 2007).

It could cause panic for some video games fans, who might assume that this means the end of the use of Havok in many multi-platform video games. However, Microsoft assured people;

 “We will continue to license Havok’s technology to the broad AAA games industry,"

For more, check out IGN's article on the matter: Microsoft Buys Havok From Intel.

With software development budgets, and particularly video game budgets increasing exponentially this day in age, it is hard to imagine any companies suddenly throwing out their dealings with Havok over this acquisition. There are many middle ware solutions, but Havok has proved a very popular engine for many developers.

Microsoft seem keen on further developing these relationships with third party companies as well as implementing it in their own games and technology. They referenced Crackdown 3 by name.

At any rate, I don't think we'll see this have any major affect in the short term, at least from a consumer perspective. Havok will keep doing what they do best; Try to develop realistic and detailed physics.