PrimeSense

The company's business model revolved around designing and licensing its hardware and software solutions to other manufacturers. PrimeSense was a fabless company, meaning it designed the chips and sensor technology but outsourced the manufacturing process. This approach allowed it to focus on research and development. Its primary revenue stream came from licensing its technology, which was embedded in over 24 million devices worldwide. Their clientele spanned various markets, including consumer electronics, gaming, retail, robotics, and healthcare.

PrimeSense's breakthrough product was the technology that powered Microsoft's original Kinect sensor for the Xbox 360, which enabled controller-free gaming by tracking a player's body movements. This was achieved through their proprietary "Light Coding" technology. The system projected an invisible near-infrared light pattern into a room and used a standard CMOS sensor to detect distortions in that pattern, creating a real-time depth map of the scene. This data was processed by their custom System-on-a-Chip (SoC), such as the PS1080, which handled the complex calculations required to interpret the 3D information. The company also offered NiTE middleware, which analyzed the sensor data to provide advanced capabilities like skeleton and gesture tracking. Beyond gaming, the technology was applied to in-store shopper analysis, medical devices, and interactive displays.

A significant milestone in the company's history was its acquisition by Apple in November 2013 for approximately $350-$360 million. This move followed years of development and speculation about Apple's interest in 3D technology. Before the acquisition, PrimeSense had successfully raised around $80 million in funding from investors including Canaan Partners, Gemini Israel Funds, and Silver Lake. The acquisition led to the integration of PrimeSense's team and technology into Apple's hardware development, widely believed to be the foundation for the Face ID technology introduced in later iPhone models.