Nvidia is continuing its quest to proliferate PhysX to as many games developers as it can. The latest move - a licensing agreement with Sony Computer entertainment - will see PhysX middleware made available to PlayStation 3 developers at no cost.
Nvidia will provide a binary version of the PhysX SDK to registered PS3 developers, enabling them to use the physics engine API, which as you no doubt know not only produces "games that not only look as realistic as possible, but also provides gaming experiences where the world's literally come to life."
Given the closed nature of consoles - that is, everyone has the same hardware - PhysX implementation should equate to more than just eye candy. Currently the best PhysX effects we've seen on the PC - Mirror's Edge being a notable example - haven't added anything but atmosphere to the games in which they are included. Admittedly not an entirely bad thing.
We'll have to wait and see if any PS3 developers actually take up Nvidia's offer of free PhysX for their PS3 titles. We can but hope we see some awesome physics-based games as a result.