PS3 Dev and 360 Physics

Gamasutra has a feature on PlayStation 3 development from the GDC which talks in brief about the tools and capabilities one would expect from the dev kit. It sounds like they are decking out their SDK with Havok and Novodex physics as well as integrated support for Epic's Unreal engine (though no free license).

On the flip side, 1UP mentions that the 360 won't be able to handle all of PhysX capabilities, notably lacking the "fluid based technology". Which is probably more notable in press releases than really impacting a game, if one were to lend a guess.

However on a side note, Mark Rein offers a rosy hard drive-less picture of using Unreal with the XBox because I guess they've designed their streaming technology to handle optical mediums just fine. Bet some developers were wishing that optical tech had an acronym other than just DVD though.