TeamXbox has a lengthy interview with the CEO of AGEIA Technologies, Manju Hegde, whose company is building the first dedicated Physics Processing Unit (PPU) called the PhysX chip. This technology is being touted as the next big thing in gaming, almost as important as the first 3D card.

AGEIA's PhysX chip is the world's first dedicated PPU. With AGEIA's groundbreaking new technology, developers can now create scenes using the same laws of physics that govern the physical universe, enabling players to interact with any object in any scene at any time, providing pervasive interactive reality. In concert with the CPU and GPU, the PhysX chip will allow game developers to create characters, backgrounds and effects that rival those of Hollywood movies, but with interactivity.