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<STREET1>801 FOX LANE
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<FILENAME>a4749839.txt
<DESCRIPTION>IMMERSION CORPORATION
<TEXT>
                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                            ------------------------

                                    FORM 8-K

                                 CURRENT REPORT


     Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934


       Date of Report (Date of earliest event reported): October 25, 2004




                              IMMERSION CORPORATION
             (Exact name of registrant as specified in its charter)

                            ------------------------




           Delaware                       000-27969           94-3180138
--------------------------------  -----------------------   -------------------
(State or other jurisdiction of   (Commission File Number)  (IRS Employer
        incorporation)                                      Identification No.)





-------------------------------------------------------------------------------


                          801 Fox Lane
                       San Jose, California                95131
              ---------------------------------------    ----------
              (Address of principal executive offices)   (Zip Code)

-------------------------------------------------------------------------

       Registrant's telephone number, including area code: (408) 467-1900


                                 Not Applicable
          (Former name or former address, if changed since last report)



Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions:


[ ] Written communications pursuant to Rule 425 under the Securities Act
    (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act
    (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
    Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the
    Exchange Act (17 CFR 240.13e-4(c))


Item 2.02 Results of Operations and Financial Condition.

     The information in this Current Report on Form 8-K and the Exhibit attached
hereto shall not be deemed to be "filed" for the purposes of Section 18 of the
Securities Exchange Act of 1934, as amended, or otherwise subject to the
liabilities of that section or Sections 11 or 12(a)(2) of the Securities Act of
1933, as amended. The information contained herein and in the accompanying
Exhibit shall not be deemed to be incorporated by reference into any filing with
the Securities and Exchange Commission (the "SEC") made by Immersion Corporation
("Immersion") whether before or after the date hereof, regardless of any general
incorporation language in such filing.

     On October 25, 2004, Immersion issued a press release (the "Press Release")
announcing Immersion's financial results for the quarter ended September 30,
2004. A copy of the Press Release is attached as Exhibit 99.1 to this Current
Report on Form 8-K and is incorporated herein by reference.

     This Current Report on Form 8-K contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as amended, and
Section 21E of the Securities Exchange Act of 1934, as amended. The
forward-looking statements contained herein involve risks and uncertainties that
could cause actual results to differ materially from those referred to in the
forward-looking statements. Such risks include or relate to Immersion's
projections of earnings, revenues, or other financial matters; any statements of
the plans, strategies, and objectives of management for future
operations; proposed products or services; any statements regarding future
economic conditions or performance; and any statements relating to delays in or
failure to achieve commercial demand for Immersion's expanded technology
offerings or delays in or failure to achieve the acceptance of force feedback as
a critical user experience in new and existing markets for our business
segments. These and other risks related to Immersion are detailed in Immersion's
most recent report on Form 10-Q for the quarter ended June 30, 2004 as filed
with the SEC on August 13, 2004. Immersion does not undertake any obligation to
update or alter its forward-looking statements, whether as a result of new
information, future events or otherwise.

Item 9.01 Financial Statements and Exhibits.
         (c)      Exhibits.

    Exhibit
    No.        Description
    -------    -----------
     99.1      Press Release dated October 25, 2004 regarding
               financial information for Immersion for the quarter
               ended September 30, 2004.


     Pursuant to the requirements of the Securities Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                    IMMERSION CORPORATION


Date:  October 25, 2004             By:  /s/ Victor Viegas
                                    -------------------------------
                                          Victor Viegas
                                          President, Chief Executive
                                          Officer, Chief Financial
                                          Officer, and Director

<PAGE>

                                  EXHIBIT INDEX



    Exhibit
    No.        Description
    -------    -----------
     99.1      Press Release dated October 25, 2004 regarding
               financial information for Immersion for the quarter
               ended September 30, 2004.

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>a4749839ex991.txt
<DESCRIPTION>NEWS RELEASE
<TEXT>
                                                                    Exhibit 99.1

       Immersion Corporation Reports Third Quarter 2004 Financial Results

     SAN JOSE, Calif.--(BUSINESS WIRE)--Oct. 25, 2004--Immersion
Corporation, (Nasdaq:IMMR), a leading developer and licensor of touch
feedback technology, today announced revenues of $5.5 million for the
quarter ended September 30, 2004 compared to revenues of $4.1 million
for the third quarter of 2003. Net loss on a Generally Accepted
Accounting Principles (GAAP) basis for the third quarter of 2004 was
$6.9 million, or $0.29 per share, compared to a net loss of $5.2
million, or $0.26 per share, for the third quarter of 2003. As of
September 30, 2004, Immersion had cash and cash equivalents totaling
$11.9 million as compared to $18.2 million as of June 30, 2004.
    Revenues for the nine months ended September 30, 2004 were $16.3
million compared to revenues of $11.9 million for the nine months
ended September 30, 2003. Net loss for the first nine months of fiscal
2004 was $17.9 million, or $0.80 per share, compared to a net loss of
$13.3 million, or $0.66 per share, for the first nine months of fiscal
2003.
    "This quarter's revenue growth of 34 percent over the same quarter
last year was driven by increased product sales and greater
contributions from royalties and licensing. In particular, medical
product sales increased 30 percent sequentially and more than doubled
year-over-year," said Immersion CEO Vic Viegas.
    "The year-over-year increase in our quarterly loss was due
substantially to Sony trial litigation expenses of $3.8 million in the
third quarter of this year versus $2.2 million for third quarter last
year. In addition, sales and marketing expenses were higher,
reflecting the investments we have made to increase medical product
sales and expand business development efforts in the mobile phone
market.
    "Yesterday we announced an important agreement with QUALCOMM and
our VibeTonz(TM) System products for the mobility market. We have made
significant progress in establishing an initial ecosystem around the
Samsung phone we expect to be released before the end of the year.
    "As we announced on September 21, 2004, the jury returned a
verdict favorable to Immersion in our patent infringement suit against
Sony Computer Entertainment, Inc. and Sony Computer Entertainment of
America, Inc. We are pleased the jury found our patents valid and
infringed and awarded Immersion damages in the amount of $82.0
million. We continue to evaluate the possible infringement of these
and additional patents by companies across all of our businesses,"
concluded Viegas.
    Immersion will host a conference call with company management on
Monday, October 25, 2004, at 5:00 p.m. EDT to discuss operating
results for the third quarter ended September 30, 2004. A question and
answer session will follow. To listen to the call, dial +1
800.374.2366 approximately five minutes prior to the start of the call
and enter confirmation number 4572190. The call will be archived and
available for replay until October 29, 2004, by dialing +1
800.642.1687, and entering confirmation number 4572190. The call will
also be simulcast on the Internet through Immersion Corporation's Web
site, http://www.immersion.com. An audio replay of the call will be
archived and available at www.immersion.com for replay until October
25, 2005.

    About Immersion (www.immersion.com)

    Founded in 1993, Immersion Corporation is a recognized leader in
developing, licensing and marketing digital touch technology and
products. Bringing value to markets where man-machine interaction
needs to be made more compelling, safer, or productive, Immersion
helps its partners broaden market reach by making the use of touch
feedback as critical a user experience as sight and sound. Immersion's
technology is deployed across personal computing, entertainment,
medical training, automotive, and three-dimensional simulation
markets. Immersion and its wholly-owned subsidiaries hold more than
240 issued patents worldwide.

    Forward Looking Statements

    This press release contains "forward-looking statements" that
involve risks and uncertainties, as well as assumptions that, if they
never materialize or prove incorrect, could cause the results of
Immersion Corporation and its consolidated subsidiaries to differ
materially from those expressed or implied by such forward-looking
statements.
    All statements, other than the statements of historical fact, are
statements that may be deemed forward-looking statements, including
any projections of earnings, revenues, or other financial matters; any
statements of the plans, strategies, and objectives of management for
future operations; proposed products or services; any statements
regarding future economic conditions or performance; and statements of
belief or assumptions underlying any of the foregoing. Immersion's
actual results might differ materially from those stated or implied by
such forward-looking statements due to risks and uncertainties
associated with Immersion's business which include, but are not
limited to, delay in or failure to achieve commercial demand for
Immersion's expanded technology offerings or a delay in or failure to
achieve the acceptance of force feedback as a critical user experience
in new and existing markets for our business segments.
    For a more detailed discussion of these factors, and other factors
that could cause the Company's actual results to vary materially,
interested parties should review the risk factors listed in the
Company's most current Form 10-Q, which is on file with the U.S.
Securities and Exchange Commission. The forward-looking statements in
this press release reflect the Company's beliefs and predictions as of
the date of this release. The Company disclaims any obligation to
update these forward-looking statements as a result of financial,
business, or any other developments occurring after the date of this
release.
    The Immersion logo is a trademark of Immersion Corporation. All
other trademarks are the property of their respective owners.



Immersion Corporation
Condensed Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)

                                   Three Months        Nine Months
                                  Ended Sept. 30,     Ended Sept. 30,
                                   2004     2003      2004      2003

Revenues:
     Royalty and license         $ 1,543  $   905  $  5,273  $  2,542
     Product sales                 3,255    2,080     8,578     6,693
     Development contracts and
      other                          653    1,076     2,469     2,704
                                  -------  -------  --------  --------
         Total revenues            5,451    4,061    16,320    11,939
                                  -------  -------  --------  --------

Costs and expenses:
   Cost of product sales
    (exclusive of amortization
    of intangibles shown
    separately below)              1,822    1,161     4,583     3,729
   Sales and marketing             2,730    1,761     8,018     5,437
   Research and development        1,881    1,799     5,847     5,227
   General and administrative      5,555    3,579    14,022     8,595
   Amortization of intangibles
    and deferred stock
    compensation                     362      609     1,233     1,869
                                  -------  -------  --------  --------

         Total costs and
          expenses                12,350    8,909    33,703    24,857
                                  -------  -------  --------  --------

Operating loss                    (6,899)  (4,848)  (17,383)  (12,918)
Interest and other income
 (expense), net                       36     (369)     (494)     (400)
                                  -------  -------  --------   -------
Net loss                         $(6,863)$ (5,217) $(17,877) $(13,318)
                                  =======  =======  ========  ========

Basic and diluted net loss per
 share                           $ (0.29)$  (0.26) $  (0.80) $  (0.66)
                                  -------  -------  --------  --------

Shares used in calculating basic
 and diluted  net loss per share  23,329   20,384    22,443    20,237
                                  -------  -------  --------  --------


Immersion Corporation
Condensed Consolidated Balance Sheets
(In thousands)

                                              Sept. 30,    Dec. 31,
                                                 2004      2003 (1)
                                             (Unaudited)

ASSETS
  Cash and cash equivalents                     $11,943     $21,738
  Accounts receivable, net                        3,659       4,927
  Inventories                                     1,889       2,099
  Prepaid expenses and other current assets         546       1,099
                                                 ------      ------
         Total current assets                    18,037      29,863

  Property and equipment, net                     1,221       1,454
  Intangibles and other assets, net               6,958       6,596
                                                 ------      ------
         TOTAL ASSETS                           $26,216     $37,913
                                                 ======      ======
LIABILITIES
  Accounts payable                              $ 3,672     $ 1,752
  Accrued compensation                            1,360         864
  Other accrued liabilities                       1,705       2,066
  Deferred revenue and customer advances          2,699       3,116
  Current portion of long-term debt                  14          33
                                                 ------      ------
         Total current liabilities                9,450       7,831

  Long-term debt                                      8          16
  Long-term liabilities and deferred revenue      6,904       4,235
  Long-term customer advance from Microsoft      15,000      27,050
                                                 ------      ------
         Total liabilities                       31,362      39,132

STOCKHOLDERS' DEFICIENCY                         (5,146)     (1,219)
                                                 ------      ------
TOTAL LIABILITIES &
STOCKHOLDERS' DEFICIENCY                        $26,216     $37,913
                                                 ======      ======
(1) Derived from the Company's annual audited
 financial statements.



    CONTACT: Immersion Corporation
             Gayle Schaffer, 408-467-1900
             invest@immersion.com

</TEXT>
</DOCUMENT>
</SUBMISSION>
