Of course AMD is going to back the ps4. It will see profits from it, like Sony will eventually.

Having said that, AMD will do its best not just to promote the product for their own good and get it as dam close to physics realism as humanly or..... hardwarely possible!! Excited to see what Sony offer.

You forget that whilst consoles can technically run the same games that a high-end PC can, it also does at a massive cost to image quality and framerate.
You get reduced lighting, reduced particles, reduced textures, reduced resolution, reduced texture filtering, reduced shader effects, reduced anti-aliasing, reduced geometry... Heck even reduced map sizes, player counts and A.I enemies in some cases.

Seriously, get your PS3 to play any PS3 game at 7680x1440 and watch it get 1fps or lower, it can't keep up to my PC, neither could the PS4 as that's the point of the PC, to use the better hardware for much better visuals and framerates, otherwise there would be no point to the PC gaming master race.

So yes, while a console can play the same games as the PC, the difference is like comparing a Wii to a PS3 graphically, it can't compete, never has and never will.

Also those percentages are just plucked out of thin air with zero factual backing.

what does the ps4 have to do with physics? i thought that was stuff like you know code that algorithms can be used in anything

you are right, it is just coded algorithms but consoles blocked new algorithms in the last years in gaming industry because almost all games had to run also on consoles due to profits. now we get new consoles which provide a lot of power so the devs can finally move on and build new algorithms. some could perhaps also benefit from gpgpu which wasn't really possible on current gen. so ps4 (and nextbox) have to do with new physics calculations (in gaming).

Correct!
However, with more processing power you can have more physics and not just more, more realistic too!

Still, AMD is essentially clasping at straws here. The processor in the Playstation 4 is essentially a low end notebook/netbook and tablet processor in terms of performance.
Still a big improvement over the PS3, but certainly nothing to write home about.

The great thing though is Developers will have choice on how they will handle Physics calculations on the PS4 because like the Xbox 360's GPU, Developers can set aside some compute time on the GPU towards doing physics calculations, the benefit of this is it's fast, Physics is an incredibly parallel task which is the ultimate fit for a GPU.
CPU's however excel at doing serialised tasks, but would be more than ample for doing simpler physics calculations, just don't expect thousands of particles influenced by physics on screen if it's the slow AMD CPU handling it.

I don't get why people are so quick to call this PR bullshit.

The reality is, there are almost no games out there that fully utilize high end GPU's. There must be about a handful of games that do and have amazing physics (not that i can name 1 off the top of head, and thats coming from a PC gamer).

You can have all the gpu power in the world, but it really doesnt matter if no games are built for it. Unless you using that power for non gaming tasks.

So this guys statement stands.

i understand that but it will always boil down to the physics libraries.  you can all the power in the world but if your  math and science dont add up it will still look like rubbish.  everything that exist has its own physical attributes lol.. thats alot of code

Unless Sony and AMD are not telling us something about the specs.  Probably not.  I'll just wait till the games show us what the ps4 is fully capable of in the physics department.

Play Borderlands 2 on an nVidia graphics card with PhysX enabled. It looks brilliant. Batman ain't to bad either. :)
Those games weren't really "built" for it as the lead platforms for those games were targeted with consoles in mind.

But that's also why you have Physics middleware (That most developers use anyway) that takes that burden away and places it on a company who gets paid to worry about that kind of thing. :)

I've played both batman games on PC with physx enabled, as well as Mafia 2. I wouldnt say either had a major impact.

I've seen quite a bit of videos on Borderlands 2 for PC with physx enabled, and it looks good plus theres added effects i think? Again nothing amazing.

Dev's don't really use physx that much or to its full potential, simply because games are built for console. And theres the 40% (i think?) of pc gamers who have AMD cards who wont get that improvement.

This is exactly my point though.