PhysX the CPU only portion has tons of competitors, but it has the highest market penetration due to being free.
PhysX the GPU acceleration portion has no competitions, none of the other methods comes even close to being able to mimic what it does. It also has no market penetration. You can count the games on your fingers.
No, CUDA is much better. This is because CUDA runs C code and Fortran natively, which are simply the best.
But dont you see, one (gpu accelerated) would not exist without the other. You can try to pry them apart but they do not exist that way. Its part of a package that is being used to move the industry forward, closer to realism. Nvidia is still perfecting physx, there is lots to be done in this area. You really think that all this work would be done if nvidia just handed it over? Do you think it would be done properly? Console ports are not gonna be programed with great GPU accelerated physx for the PC.
Physx is not going anywhere cause AMD chips cant run it? thats the simple consensus but its not so simple, not at all. Even if Nvidia gave out GPU accelerated physx the but load of development (cash) would be all on nvidias tab. They would have to port it to openCL. They would have to debug it, even on AMD hardware. Most importantly, developers mainly focus on consoles. Do you think they will put boat loads of cash in GPU physX for the PC versions of games? They currently dont. Your lucky to get AA. Do you really think developers would program great physx (and properly) if it would run on AMD hardware? Look at what we have today.
The real truth is if nvidia didnt develop GPU physX in these games there wouldnt be any. These console ports would not put resources in it. Greed, laziness, and Politics (M$ & xbox) all would prevent this. Its not gonna happen. There was a time when both AMD and Nvidia users could have Ageia physx and why didnt it take off?
Consider this and you will start to see, nvidia is making physx happen. Its not something that is easy to do like you may think. Even so they are doing some important things. Letting developers use it for free, this is very important. The developers are getting familiar with it and Nvidia's focus is to simplify it as much as possible. They are still evolving physx. The GPU physX is their showcase of possibilities. Since it wouldnt be here if nvidia didnt pay for it, making it an exclusive makes way more sense.
Nvidia is pushing in a direction which is pushing the industry. Things could go many different ways. You can bet the next consoles will take physics very seriously. They may very well have a dedicated solution. However unlikely, it may even be nvidia's. You can bet your butt nvidia wants to attract them. But even if they dont use physx, we will most likely see some sort of advanced physics processing. Once this occurs, the PC will need to have a way to reproduce it. PhysX could be worth a lot more. If not, physx is haere to step PC gaming up a notch. Its an attempt that should be appreciated.
Regardless, nvidia has not failed with physX not by any means. Its just not that simple.