The US Army has set up its own game development studio following on from the success of online tactical shooter, America's Army.
Okay, it may not be winning any awards for originality in game names, but the new America's Army Government Applications office was opened earlier this year, to develop software to train US forces.
Somehow we doubt Valve is quaking in its boots, but America's Army has been a valuable propaganda tool/recruitment ad for the US military, already boasting 3.4 million registered players. This new development arm already boast 15 ex-employees of gaming giants like er Magic, Timeline, Vertis, SouthPeak Interactive, Vicious Cycle Software and, oh yes, Red Storm Entertainment.
Headed by ex-Red Storm and former Apache pilot, Jerry Heneghan, the AAGA is also developing training simulations for other government agencies like the Navy and secret service, as well as working on the newest edition of America's Army, which is due next March and entitled Overmatch.