Impact: Intel is not generally in the business of purchasing software companies so this move is very interesting. What it provides Intel is a solid step up on the graphics front particularly in the gaming space. Intel and Havok have been working together for some time on HydraCore a software technology that optimizes multi-core and multi-threaded hardware for games. The assumption is that Intel will be able to leverage Larrabee, Intel’s multi-core processor, as not just within the gaming market but also with other markets where Havok will now start to branch out. With development pipelines becoming more complicated developers are turning to middleware solutions to help leverage their internal development, as is evident by Intel’s purchase price of Havok. These tools are physics-based engines not game engines like Epic’s UE3, Gamebryo or past game engines like Renderware. The current value placed on the entire games middleware market is currently between $100 million to $200 million. That makes Intel’s $100 million investment stand out.