Microsoft has signed a licensing deal with Havok, the provider of physics engines to the global game and movie entertainment industry.

The deal makes the company’s core Physics, Animation and Behavior products available to all Microsoft internal studios and development partners worldwide.

Under the agreement, Microsoft game creators that choose to license Havok Physics will automatically receive Havok Animation. Havok's physics engines and software tools enable video game and PC developers to speed development time, keep costs in check, improve internal efficiencies and reduce overall development risk.

"Microsoft Game Studios is proud to have committed to a long term partnership with Havok. As a leading publisher, our mission is to deliver the highest quality Xbox 360 & Windows gaming experience to our customers," said Jason Mangold, business manager at Microsoft Game Studios.

Some of the Microsoft titles currently in development that are using Havok products include Fable 2, Halo Wars, Banjo Kazooie: Nuts and Bolts, plus a number of additional games.

Microsoft has been licensing Havok products since 2001 and the engine has already been used in several Microsoft titles including Halo 3, Halo 2, Scene It? Lights Camera Action, and Age of Empires III.

Havok recently unveiled Havok Cloth and Havok Destruction – its latest product offerings that make physics technology available to artists, synchronising art and game development for more efficient game development.