Yahoo has an article taking a closer look at Ageia’s PhysX addon card that allows game developers to add powerful, and realistic physics to their games. With graphics reaching a plateau in quality, industry analysts believe that physics in games will be the next big thing to grow in leaps and bounds. Ageia is banking on that with their new physics chip, PhysX.

Buildings will blow up spectacularly, football tackles will become more bone-crunching, and cloth will flutter and crumple, lending a dramatic flair to online role-playing games.

Analysts say Ageia could rewrite the rules of the game for an industry whose $10 billion in annual U.S. sales of hardware and software outstrips Hollywood’s box office take.

I personally think it will work out for Ageia, especially if they manage to lower the cost (currently at $300.) Physics in games as they are today have elicited a feel of wonder and glee, and to make it more realistic and powerful, I forsee a crop of games that immerses us gamers even more than ever before.