The critical factor for the future of "PhysX" chips is consumer acceptance. Will we, as consumers, accept a $300 add-on for a function the GPU and CPU can handle on their own?
Is it consumer "cheapness" that will "stifle games" or is this a silly, unnecessary fad brought on by an ambitious company?
It's also an issue of whether or not the developers accept it. It's really down to them--because if no developers make PhysX-exclusive games, consumers will have no real reason to buy them, and thus no acceptance from either.
Do I personally accept PhysX? Hm.. Well.. Personally, I think if physics-processing was that important, they should work with NVidia and ATI to get it incorporated onto the same card and call it a 'gaming accelerator' or something, instead of "2D/3D graphics accelerators."
In any case, $300 is a lot to ask--BUT, Ageia claims PhysX won't do the same thing that Nvidia/ATI do, in that they release new cards constantly. Ageia claims the processor will last many years, and it's function is updated via software rather than hardware upgrades.
What do you guys believe?