Virtual reality simulations expert Perceptronics Inc is hoping to carve out a new niche for itself in the emerging online games market using a $1 million plus research grant. The shift in direction comes at a time when the company’s traditional military simulation business is becoming increasingly competitive. The Woodland Hills, California based company is working with three- dimensional display company, Infinity Multimedia International Inc of Los Angeles. The two have sucessfully managed to network a game using a standard PC platform at one end and an arcade type games with Infinity’s three-dimensional display – which allows the viewer to see full-colour, moving images in true 3D without special glasses – at the other. It did this using a general communications structure for large-scale networks of simulators and simulator-like games, called High Level Architecture, from the US Department of Defense. Perceptronics’ business goal is to develop a system so that an arcade game can be networked to a PC in the home for the ultimate multiplayer online games experience. Its proof of concept game, developed with $100,000 funding from the Small Business Innovation Research contract is a basic ping- pong game played at one end on a PC and networked to a system that uses Infinity’s 3D display technology. Perceptronics has now secured second-round funding to the tune of $1.1m, around half from the Small Business Innovation Research contract and the rest from an unamed private investor.