For example, a game developer's software could improve the realism of a military simulation system.

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Last year the company had a genuine hit with its quick-paced strategy title, Age of Empires, released a vastly improved version of its Flight Simulator and had solid offerings in the military strategy and racing simulation genres.

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With its military contacts, expertise in anti-terrorism and combat simulation, and all its detailed models of the effects of various weapons, Digital Sandbox realised that it was in a good position to diversify into extremely realistic computer games.

ECONOMIST: Serious games