It looks like Intel has skipped out on graphics cards altogether with the purchase of Havok. They’ve added a Physics Processing Unit to their lineup, which may pay off serious dividends once the GPGPU starts to hit the market. It seems to be even more complex than that, as we are expecting to see Intel releasing a gaming class GPU sometime in the near future.  They have been talking about it for quite a while now, from EEE in 2006 to recently giving it the name Larrabee

The other twist is that Havok had previously partnered with nVIDIA, as Ryan found out during last years GDC.  That partnership had already managed to get nVIDIA’s cards to process physics, and that was on display at the same conference

Now that Havok has Intel in charge, nVIDIA position as a partner is likely to undergo at least some changes.  Hopefully we will hear more at the IDF.
SANTA CLARA, Calif., Sept. 14, 2007 – Intel Corporation today announced it has signed a definitive agreement to acquire Havok Inc., the leading provider of interactive software and services used by digital media creators in the game and movie industries. Havok will become a wholly owned subsidiary of Intel.

The acquisition will enable developers in the digital animation and game communities to take advantage of Intel’s innovation and technology leadership in the creation of digital media.

“Havok is a proven leader in physics technology for gaming and digital content, and will become a key element of Intel’s visual computing and graphics efforts,” said Renee J. James, vice president and general manager of Intel’s Software and Solutions Group. “Havok will operate its business as usual, which will allow them to continue developing products that are offered across all platforms in the industry.”

Havok’s modular suite of software development tools is used by game and digital animation creators to build realistic video games for all types of hardware and digitally animated movies. The company’s combination of superior technology and dedication to customers has led to its technology being used in more than 150 of the world’s best-known game titles, including “BioShock,” “Stranglehold,” “Halo 2,” “Half Life 2,” “The Elder Scrolls IV: Oblivion,” “Crackdown,” “Lost Planet: Extreme Condition,” “MotorStorm” and “Harry Potter and the Order of the Phoenix.” In addition, Havok products have been used to create special effects in movies such as “Poseidon,” “The Matrix,” “Troy,” “Kingdom of Heaven” and “Charlie and the Chocolate Factory.”