Earlier this week, Havok sounded off on physics usage in Ghost Recon: Advanced Warfighter specifically dealing with AGEIA's PhysX card. In particular Havok cited claims by users of lower frame rates once PhysX was applied to the game. In this article AGEIA responds to the FPS reports, as well as clarifying physics usage in GRAW and game consoles. Here's an excerpt:

AGEIA: Consider first that PhysX is focused on enabling an entirely new experience in gaming in which literally 1,000s of objects of differenct types can move, collide and interact. Up to now, this has not been possible. The goal of PhysX is to enable this new class of complex physics algorithms to be processed within a more than acceptable frame rate. Of course, depending on the game and the PhysX implementation and the rendering capabilities of the system, there may be occasional momentary frame rate impact, but on average, we don't expect this to be significant.

It's unclear how this individual measured frame rate impact, however we aren't keeping our heads in the sand. We appreciate feedback from the gamer community and based partly on comments like the one above, we have identified an area in our driver where fine tuning positively impacts frame rate. We made an adjustment quickly and delivered it in a new driver (2.4.3) which is available for download at ageia.com today. That's the beauty of the PhysX solution. A powerful processor is in place now and a flexible software solution is there to continue improving the PhysX experience for our customers. Buy a PhysX accelerator today and it keeps getting better.

Yeah, we will see :)

Only the problem with AGEIA is that they are saying, "certain games won't be as good as they can, unless you have out PhysX card to open up all of the games avliable physics". I dont think that will make a particular game sell any better, or really make people want to rush out and buy a PhysX card.

Personally I am more excited about the direction that AGEIA is trying to take the industry, rather than where they might or might not actually take it.

well it's good news that they are not denying deficencies. Keep the improvements coming!