Originally Posted by Xion X2
It's really that simple, people. And since ATI is prevalent in the market right now, GPU PhysX is as good as dead. You'll have a title here or there that may use it for a few "ah, neat-o" effects that get tired after a few minutes and that's about it. Developers simply aren't going to delegate resources to something that won't be leveraged by everyone. As they shouldn't.
If I were Nvidia, I would probably try to do the same thing by keeping GPU PhysX in my hands, but they cannot win this game as long as ATI is a player in the industry. And it doesn't look as if that's changing any time soon.
Open standard is the only way to go at this point.
ATi isn't "prevalent in the market now" - they lost some of their second place desktop market share in Q4 2009.
As for what devs "will" do, given that many games are still in development, and several have launched, I guess they don't care as much about it being proprietary as you do Xion.
Here's the difference: NVIDIA has the dev relations and resources to make things like PhysX a reality.
The staff at ATi probably spend their weekends scouring parking lots and ditches for aluminum cans and deposit bottles to cash in for their "Let's get hardware accelerated physics in one game so we can say we have this" project.