AMD bought ATI. Intel bought Havok. With this purchase Havok will become a wholly owned subsidiary of Intel. What does that do for Intel?
From Intel's press release:
The acquisition will enable developers in the digital animation and game communities to take advantage of Intel's innovation and technology leadership in the creation of digital media.
Most of PC users don't consider Intel as significant player in the graphics cards market. That's where you are wrong. If you check some numbers you will see that Intel has 40% of the market with AMD second with only 26%!
With the biggest market share and new technology acquired by Havok Intel has a huge potential in gaming market. Havok does not need an introduction but if you are new to gaming market you have almost certainly played a game using Havok engine. It runs on Wii, PlayStation®3, PlayStation®2, PSP™, Xbox360™, Xbox, GameCube™ and the PC and over 70 games are using it. Keeping that in mind and Intel's share market AMD and nVidia may have a lot of hard time ahead of them. Especially if Intel creates a half good card that will be sold in millions as integrated video card. I know I would like to run Half-Life 2 on built-in video card instead forking $250 for it.
Let's wait and see what they will do.