Gmax is a cut down version of 3dsmax.
They cut out ALL the rendering, most of the materials editor/shadetree and some of the more complex animation systems.
Basically what you have is a fully customisable 3D application designed specifically for in-engine game design.
I saw discreet demoing a version called..err...something that was done for quake3. You can create flash-based control panels for in game entities so it becomes easier to use and easier for you to create a moddable game because you wont have to code your own SDK.
GMax is fully compatible with 3DSMAX insofar as they share the same architecture. 3dsmax obviously wont natively open proprietry game 3D files (still no POF? time to grill volition over a Gmax sdk? anyone?)
On the other (rendering) side..anyone played with Final Render yet?
Oh..and i found out a softimage XSI 2.0 student license will only be £300

yippee!
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AARGGH!!
My Normals' Flipped!!