"Havok is an amazing technology supplier in the games industry and the leading real-time physics creator. We saw an opportunity to acquire Havok to deliver great experiences for our fans," Microsoft said in a blog post.
Havok, whose business model involves licensing its physics technology to developers, was founded in 1998 in Dublin before being purchased by Intel in 2007 to accelerate its play in the gaming market.
Although the technology major did not give out any details about the acquisition, it said: "Microsoft's acquisition of Havok continues our tradition of empowering developers by providing them with the tools to unleash their creativity to the world."
"We will continue to innovate for the benefit of development partners. Part of this innovation will include building the most complete cloud service, which we've just started to show through games like 'Crackdown 3'," it added.
Havok has previously partnered with Activision, EA, Ubisoft, Nintendo, Sony, Microsoft and many others to create more than 600 games including Halo, Assassin's Creed, Call of Duty, Destiny, Dark Souls and The Elder Scrolls.
It also contributed in developing special effects in movies like "The Matrix" and "Charlie and the Chocolate Factory".
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