NVIDIA today confirmed rumblings that they were looking to buy physics-centric AGEIA Technologies. NVIDIA said today that an agreement to acquire the industry leaders in gaming physics, though the acquisition still remains subject to some closing conditions.

More details about the deal will shake out during NVIDIA's upcoming quarterly conference call, set for Feb. 13.

While AGEIA appears to continue to struggle breaking into the mainstream PC market, they've made significant in-roads into the console market with 140 PhysX-based games shipping or in development on the Playstation 3, Xbox 360, Wii and PC. The company has more than 10,000 registered and active users of their PhysX software development kit as well.

"NVIDIA is the perfect fit for us. They have the world's best parallel computing technology and are the thought leaders in GPUs and gaming. We are united by a common culture based on a passion for innovating and driving the consumer experience," said Manju Hegde, co-founder and CEO of AGEIA.
Full release on the jump. I wonder if NVIDIA would try to come up with a way to incorporate the PhysX engine into a graphics card, instead of requiring two pieces of hardware? Maybe that's not possible, actually.