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Apparently the game installation doesn't install the right version of physx. However, it gives you the installation files, so you have to run it manually.
Go you the folder where you have Steam installed. And then browse to:
SteamApps\common\Sacred 2 Gold\redist\PhysX
run the install file in there.
http://www.nvidia.com/object/physx-9.13.0604-legacy-driver.html
Pity we can't get this stickied.
I REALLY dont want to download this and have it mess up the rest of my game library somehow.
This is one of my favorite ARPGs and I am happy to be able to play it again.
Save file location on Windows 10:
c:\user\YOUR USERNAME\saved games\ascaron entertainment\Sacred2
1) Having Steam verify the files.
2) Reinstalling the game.
then I am out of ideas.
Copy (don't move) both the d3d9.dll and d3d9on12.dll from your Windows\System32 directory to your Sacred 2 Gold\system directory. If they're already present, overwrite them. Copying the ones from Windows\SysWOW64 instead of Windows\System32 may work also, but they stopped working for me after shifting to Win11.