Microsoft has signed a "perpetual licensing agreement" that will make the Havok physics engines available to Microsoft Game Studios and its development partners.

The agreement, announced Wednesday, involves Havok"s physics, animation and behavior products, as well as future products such as Havok Cloth and Havok Destruction.

Microsoft developers that license Havok physics will automatically receive Havok animation as part of the deal, the companies said.

Several Microsoft Game Studios products use Havok, including Halo 3 (pictured), Halo 2, Scene It? Lights Camera Action and Age of Empires III. Upcoming titles using the engine include Fable 2, Halo Wars, Banjo Kazooie: Nuts and Bolts and others.

Microsoft has used products from Intel-owned Havok since 2001.

Aside from being used in games from various leading game makers, Havok products have also been used in movies such as Harry Potter and The Order of The Phoenix, 10,000 BC and The Matrix.