announced that they have signed a definitive agreement to acquire AGEIA. Fudzilla predicted
that an agreement was close at hand and that AGEIA was going to be acquired a few weeks back.
The decision to acquire AGEIA is a natural move by NVIDIA to gain an even stronger position in the development of gaming physics technology. AGEIA’s PhysX software is widely in use in games on a variety of platforms.
While we accurately predicted that AGEIA would be acquired, we think that ultimately for NVIDIA it is a good move. While the PhysX processor technology has not really picked up steam on the PC, it has grown to compete with Havok as a premier physics technology that has been adopted by many software developers.
We believe that NVIDIA can use its resources to do two things that AGEIA on its own was not able to achieve: get more software developers to use the PhysX technology; and use its technology skills to shrink the chip and reduce the cost of the PhysX processor for use in a variety of devices such as next generation consoles, as well as an add-on board for the PC. We expect that NVIDIA will be able to get more partners interested in producing PhysX boards than AGEIA was able to convince.
In the end NVIDIA buying AGEIA is a good move that should pay dividends and gives NVIDIA another avenue to create products and technology to generate a new stream of revenue.
You can check out the NVIDIA press release here