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It took them too long to do something like this.

http://news.cnet.com/8301-13924_3-10198809-64.html

That is something that adds value to the PS3, something that Sony really needs in order to justify the price tag. Good for the PS3 owners, however, it's unlikely that any good game using the technology will come up before mid-2010.

There is no word however on how much the graphics of the games that choose to use PhysX will suffer, since some processing power of the GPU will be allocated to physics.