Nvidia to Acquire Ageia

In a move that comes as a bit of a surprise, visual computing technology major Nvidia has decided to acquire PhysX card maker Ageia. PhysX cards (or PPUs as their called) serve the purpose of extending realism by allowing games to simultaneously handle hundreds of 'physics' instructions.

The popularity of these cards can be gauged by the fact that all current-generation consoles (including Xbox360, PS3, and Wii) accommodate this chip. Furthermore, they are sold as standalone cards for the PC and there are over 150 titles that are available that can utilize this technology.

While on paper this move sounds good, it raises a few interesting questions. First off, how quickly will Nvidia integrate PhysX technology on to its own chipsets? Ageia has already licensed out its Physx technology to a lot of game-makers. Post-acquisition, will Nvidia become a 'middleware' provider? How will it affect its current standing with game developers? Only time can tell.