They can also negotiate exclusivity of certain middleware as part of the hardware deal.
They probably cannot do that with PhysX anymore, because it is already an established standard on PC. But something new for AMD hardware, heck, perhaps Microsoft would even have to develop it themselves (we know that AMD hasn't been able to produce any physics middleware even though they've been trying for years... Ever looked at the Bullet repository? There's basically one AMD guy contributing (Lee Howes), and he hasn't exactly done much... AMD also has not fixed the point sprite bugs reported by Erwin Coumans in March(!)).
Disclaimer: This is not a personal attack on you so don't take it that way. I'm just asking you as you seem to be an active participant in this thread. You seem like you are knowledgable and might have insight others want to read.
Just because AMD didn't publicaly announce anything yet doesn't mean they don't have something in the works. It's possible they are looking for some solution to the problem/equasion that doesn't involve the massive framerate drops or the need for a dedicated card to get the benefits of the physX style eye candy of physics. Maybe they are looking for a way to make physics trully change gameplay without the penalty and feel that with a substantial performance hit it's time isn't now.
So what is your take on Manju Hegde, Nvidia VP for PhsyX and CUDA Marketing and previously CEO and co-founder of PhysX inventor Ageia prior to its Nvidia buyout, has gone to AMD. http://www.bit-tech.net/news/hardware/2010/05/26/physx-founder-leaves-nvidia-for-amd/1
I was just wondering if you thought he did it for the money? We have been told time and time again that AMD doesn't have the funding that nvidia has.
Do you think he did it because Nvidia killed his dream?
Do you think that when nvidia nuked the drives disabling physX when AMD card is the primary GPU was the last straw for him?
Do you think with his help AMD can jump into physics and make an impact?
Do you think that he knows physX is a thing from the past that has no future?
I know it's alot of questions but others can jump in and share insight on what they think the answers would/could be. Why they think he went to AMD, etc.