It has long been dismissed as the preserve of geeks and social misfits. But now the Government believes the video game industry has the potential to revive the Republic's ailing IT sector, creating up to 3,500 jobs in the process. Edward Power reports.

Speaking after a visit to the Tokyo headquarters of the Sony Corporation, manufacturer of the best-selling Playstation2 console, the Minister for Communications, Marine and Natural Resources Mr Ahern said the State was positioning itself as a hotbed for video game innovation.

Video games remain a peripheral presence in the Irish computer industry with Havok, the Dublin developer of graphics engines, one of only a few to achieve global recognition.

But with PlayStation penetration in the Republic the highest outside Japan at 38 per cent of households, the Government believes the potential for growth is unlimited, said Mr Ahern.

He added: "Both Korea and Japan are leaders in developing and writing software for the games sector... As the games sector expands globally, I believe Ireland can be the centre of choice for games companies."

Mr Ahern said: "Ireland is recognised internationally as leader in software manufacturing. We are the largest exporter of software in the world. The Government and IDA Ireland continue to position Ireland at the high skills end of the market and games software writing is a natural progression."

Video games sell in huge numbers in Korea and Japan and developing a viable video games industry could boost exports to both markets, said Mr Ahern.

"Less than 4 per cent of our exports go to to Japan... The Japanese have enormous spending power. Irish companies that sell to Japan discover that other Asian markets then open up," he said.