When speaking to "BootDaily" John Carmack apparently told them that dedicated physics cards don't really add anything to a multi-core system that the CPU's and GPU's can't already do. I wonder if Aegia's stock dropped on this news?

Granted, John wants GPU's to become more general purpose, with finer grained scheduling and context switching, however in the last few years we've definitely observed a trend of increasing GPU processors which are becoming more general purpose with time - witness the 320 stream processors in the 2900XT and the 128 processors in the 8800GTX Ultra.

Apparently Half Life 2: Episode 2 and Crysis will both do advanced physics across CPU cores - which is not surprising, given that it is simply a matter of game houses writing the physics to run as a separate thread (or threads) so they can take advantage of multiple cores.