NVIDIA announces that Sony licensed the NVIDIA PhysX engine for the Sony PS3.
The binary version of the NVIDIA PhysX technology software development kit (SDK) is now available to registered PS3 developers for free download and use on the SCEI Developer Network.
It looks like Sony has a change of heart and tries to make the PS3 easier to develop for contrary to these recent mind boggling comments.

The NVIDIA PhysX technology software development kit SDK consists of a full-featured API and robust physics engine, designed to give developers, animators, level designers, and artists unprecedented creative control over character and object physical interactions by allowing them to author and preview physics effects in real time.
The continued adoption of NVIDIA PhysX technology by the world’s leading content developers is resulting in games that not only look as realistic as possible, but also provides gaming experiences where the world’s literally come to life: environments become highly interactive with effects such as persistent debris, including shattered glass and weapons ammunition, trees that bend in the wind, and water that flows with body and force.

The PhysX technology source code SDK for PS3 and all major gaming platforms are available for license directly from NVIDIA.
More details on the NVIDIA PhysX site.