underlined portion: fair statement
rest of it: what does nvidia pouring in resources (allegedly) to develop it into the "most advanced engine" (allegedly) have to do with market acceptance? What does out innovating havok (allegedly) have to do with market acceptance?
The market wants more realistic physics in their games, and PhysX is the only physics engine that can deliver it.
What other physics engine offers fluid, smoke, fog, cloth, hair, snow, fur simulation, plus other effects like turbulence, force fields etcetera all in one package?
Answer, none.. Why do you think CDPR is dropping Havok in favor of PhysX for the Witcher 3?
It's because PhysX is a more advanced physics engine that is capable of doing more..
Also, the physX marketing trick is to gain fake market acceptance by giving out for free to developers... but even free a developer isn't willing to lose that many customers so 99% of "physX" using games implement the CPU only version of it and cannot benefit from gpu physX at all
Software PhysX is free for developers, but hardware Physics isn't.
And while you're correct that the majority of PhysX titles are done with software PhysX, an increasing number of AAA titles have been using hardware accelerated PhysX as well.
Just this year we've had Metro Last Light, Batman Arkham Origins, Call of Duty Ghosts....all major titles.
Also it could have been great if nvidia hadn't tried to leverage a non existent monopoly too early. They did that by including DRM in their GPU drivers that disables physX if an AMD CPU is detected on the same system. So you can't have an AMD card as a main GPU and an nvidia card as a PhysX processor to go with it. You must have both cards be nVidia.
As any shady businessman will tell you, FIRST you create the monopoly, THEN you leverage it. nVidia got those two steps confused and it was really pathetic to see them shooting their own foot like that.
Had they ENCOURAGED people to get an nvidia secondary physX card with an AMD main video card it would have allowed them to create the monopoly... then they could have introduced that "no AMD cards" limitation when/if they reached 90% of market share.
NVidia's response to this was that because there is a great deal of communication between the rendering and PhysX card, they couldn't allow it as they cannot touch AMD's drivers. Plus they didn't want the burden of responsibility for tech support, validation and what not......which makes sense.
And why would they want to give their competitor any advantage anyway?