This is called a "bus mouse" and is the precursor to PS2
technology. In the 1980s IBM compatible computers did not have a
built in interface for a mouse. At the time many mouses used a
serial connection (COM port). The bus mouse interface was developed
by Microsoft so that the mouse would have its own dedicated
interface. It was soon rendered obsolete when IBM released its next
generation of PC's with the PS2 interface for keyboard and
mouse.