Hasn't gone really.
PhysX may catch on when more Unreal 3 tech games get released.
i wonder what would happen if physX and Havoc actually joined forces.
Not as silly as it sounds ... in fact quite possible, if someone else (AMD-ATi, Intel, or nVidia) doesn't buy PhysX first. Of course, it will need to prove to be a threat, first, say if the new Unreal engine causes a tide of people to buy soft-furnishings-flapping hardware ...