There’s a new sheriff in town, Silicon Valley town that is, and this newcomer wants to shake things up in the videogame industry.

Ageia Technologies Inc. has created what they call the PhysX Processor and its claim to fame is that it takes creations in the virtual world and simutlates them to appear and feel like the properties of the real world of the physical.

What was once only an idea in the mind of those writing scifi is quickly becoming a tool in the real world. What’s next? A holodeck perhaps?

Speaking on behalf of the product, Ageia Chairman and CEO Manju Hegde stated in an interview to make public the PhysX, “What we are offering to the game industry is the ability to make physics and interactivity reach the same level of importance that graphics has.

“Physics makes games feel real the way graphics makes games look real.”

Of course, the big question is, will gamers be willing to pay the kind of big bucks, (around $300 just for the chip), it will take to get that kind of hardware? The other big IF is the ability of current gaming equipment to handle this advanced technology, so there will be more money needed to purchase new gaming equipment as well.

In a recent demonstration observers were blown-away by the chip’s power and ability to make the virtual world of the game seem absolutely real and dimensional.

Once Ageia and some of its competitors get these low-tech compatibility problems worked out for its high-tech, high-powered chip, then the face of gaming will no doubt be changed forever.