NVIDIA shed some light with how they were going to utilize their recently acquired Ageia PhysX property. NVIDIA plans to incorporate the PhysX engine into the GeForce Compute Unified Device Architecture (CUDA) SDK.
What will this mean for the end user? Every single GeForce 8 owner will have GPU accelerated physics capability out of the box. If NVIDIA’s CEO is to be believed, it may also entice high-end gamers into buying more video cards.
Ultimately, this is all moot if no one supports it. I assume Unreal Engine 3 will just work with the PhysX enabled CUDA, but that’s just speculation on my part. Until developers begin announcing their endorsement and utilize this technology, there’s no need to celebrate yet.