I saw that stuff a day or so ago. h: Says on the FAQ that physx software is used for most of the physics in GRAW on 360. I've been looking for cool physics effects ever sence and I keep getting gunned down.
Physics onboard cards is 6 months old news - DirectX 10 should be making this stuff much more commonplace when Vista (eventually - delayed AGAIN) ships sometime whenever. At the moment only a handfull of games even use the AGEIA engine anyway so the card will do bugger all for pretty much every game on the shelves and PPU's will be making their way onto the graphics cards of the near future anyway - the difference being everyone will be able to make use of the hardware thanks to DirectX10 and the AGEIA cards (unless developers really take to using their physics) will become redundant :O
