ATI Will Only Use Havok
Not so long ago, NVIDIA was rumored to be helping ATI in order to integrate the PhysX technology in their GPUs, although AMD would only allow for Havok to be present in their chips. I don’t really know what happened with NIVIDA and ATI, but it turns out that AMD's Physics department have recently stated that AMD plans to introduce Havok on GPU only when this ends up being faster than PhysX.
Fudzilla informs that AMD is aware of the fact that Ageia's PhysX (currently NVIDIA’s property) brings cool physics effects to games, but it also causes the graphics performance to drop. This is quite undesirable for AMD, so whenever AMD decides to include Havok in ATI’s GPUs it has to be done right.
AMD aims at making the Physics + Graphics GPU faster than CPU accelerated physics and the FPS that you are getting from a graphics card alone. To achieve this tricky feat, there has to be a dedicated part of the GPU to handle physics while the other part will do graphics. Or ATI could be developing a special chip that handles physics instructions and place it on the same PCB with the GPU. Either way, the memory bandwidth would have to be split in two and frames could be lost.
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