Short bio: Computer Scientist, FOSS supporter (read more)
Tux Machines (TM)-specific
At the Edinburgh International Conference Center, Nvidia announced that the new Unreal Tournament 2007 and Gears of War will both be using the Novodex physics engine (that's Swiss) and not Havok.
The company also said that within the next year they will be releasing a special physics graphics card which will take over the physics calculations load from standard graphics cards. Both Unreal 07 and Gears of War will likely support this feature.
Finally, the company announced that Rockstar purchased the Unreal 3 Engine for a future title.