As the PSX2, X-Box, Nokia N-Gage and online users enter the next phase of interactive play, Liverpool has risen to the fore to join a cluster of European hot-spots as a centre of excellence in the field of game development.

The home computer boom of the early 80s mirrored the dot com stampede of the late 90s, with Merseyside emerging as the UK's own Silicon Valley.

ZX Spectrum classic Manic Miner

Liverpool was home to media magnet Imagine, creators of cult favourite Arcadia and frequently cited as hiring schoolboy programmers with inflated salaries - owning Porsches they weren't yet old enough to drive.

Imagine crashed in spectacular fashion, as did Bug-Byte Software that created ZX Spectrum favourite Manic Miner; precursor of today's platform games like Crash Bandicoot and Tomb Raider.

Yet some studios survived to rise from the ashes. Psygnosis, founded in 1984, quickly established an industry benchmark with the likes of Wipeout®, Destruction Derby and Formula One.

This led to their successful assimilation by the Sony Corporation in 1993 who chose to remain in the city rather than relocate; due in no small part to the skills base that had evolved over the years.

Matt Southern

"Game development is a creative process and needs to be slightly informal, unpretentious and 'playful', which fits perfectly with the culture in Liverpool," explains Matt Southern, Digital Games Liaison Coordinator at the International Centre for Digital Content.

The ICDC is part of Liverpool John Moores University, encompassing teaching, research and production. Graduates have gone on to work with all the major and smaller developers; a reciprocal relationship which sees the same companies visit to lecture and assess student projects.

"There is a real sense of community in the region, strengthened by two groups - the International Game Developers Association and the M62 Games Network which unites Liverpool and Manchester with support events and trade visits."

Liverpool's ICDC Centre

One local company, Studio 33, have recently been acquired by Electronic Arts; the largest games developer in the world.

Their intention to stay in the region and upgrade to a larger site is a firm indication of belief in Liverpool's future, while the likes of Guildford and Dundee also rank highly in the field.

"This geographical clustering is very important in game development," confirms Owain Bennallack, Editor of Develop Magazine.

"Companies need a large pool of talent to draw on and that talent must be experienced.

"This is handy for employers too, since the future of any one developer can never be assured."

Project Gotham Racing 2 © Bizarre Creations Ltd

It's true that the region is not immune to ill fortune. Recent closures include Rage (Rocky, David Beckham Soccer) and Genepool (X2: Wolverine's Revenge), both deserving of further success.

The current wave of consolidation poses an immediate problem whereby smaller companies are bought up by major brands and stripped of assets.

Globalisation also represents a threat with the Asian and Balkan markets both substantially cheaper from which to create product, thus maximising profits.

But it's not all bad news. ICDC's inaugural Game Production and Development Conference, held earlier this year at the Crowne Plaza in Liverpool, proved such a success that it is now to be an annual event.

Delegates from across the world explored such key themes as emerging platforms, new devices and market trends, while exploring the merging of creative freedom and commercial ambition.

More consoles + more competition = more games!

Despite dedicated magazine titles, the topic still doesn't command nearly as much attention as home-grown sporting icons or music and film stars.

"There are fantastic stories of successful, talented British games developers and their companies who have only got a fraction of the coverage they'd have received if they cut jeans or records," says Owain Bennallack.

"That's ridiculous. Games are a part of mainstream entertainment and deserve to be covered as much as supposedly 'sexier' industries.

"Games developers wear cool t-shirts and skateboard around the office - how much sexier do you want?"

Retail forecasts suggest mammoth profits this Christmas, with videogames likely to finally overtake music sales for the first time.

Instead of moustachioed elves with bells on their toes, Santa's true helpers live and work here in the North West.

As for the ol' fella himself, he might be a bit late this year.

According to our sources he's not going anywhere until he completes one more circuit on Project Gotham Racing 2…

Project Gotham Racing 2, published exclusively on X-Box, is released on 28th November by Bizarre Creations Ltd. All images used above are subject to copyright. With thanks to Bizarre Creations Ltd, Develop Magazine and the International Centre for Digital Content.