AGEIA is pioneering a new direction, but the product is a complete flop. Many people want what it can do and have the money, but they don't want the PhysX. Lack of game support killed it and it will never recover from that.
NVidia/AMD are pushing in different directions and they'll probably win. The first one to come up with a way to accelerate the physics of all games, regardless of developer participation, will win big. But that is probably impossible. If the next product like this requires developer participation, they'll have to have a hell of a lot of major titles supported and publicly acknowledged commitment from major publishers like EA and Ubi and major dev groups like CodeMasters, etc to sell any.
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