A MAKER of computer games is going from strength to strength after signing a deal with one of the major players in the console market.

Onisoft, of Teesside, set up last November, has been accepted on the Microsoft Xbox incubator programme. Aimed at an exclusive number of smaller developers, it allows them access to Xbox software to develop games for the console ahead of signing a publishing deal, and takes the company a step closer to creating games for Microsoft.

The company was set up by two Canadians who completed masters degrees in computer aided graphical technology applications at the University of Teesside. Paul Dolhai and Doug Wolff are based in a business unit provided by the university in Victoria Road, Middlesbrough.

They originally intended to return to Ontario after their course, but were talked into remaining in the North-East, after Business Link helped them secure £50,000 in start-up funding.

"Thanks to the tremendous support we have had, we have found ourselves staying," said Mr Dolhai. "In our opinion, this area is the best place in the world to start a games company."

The company is working on an action role-playing game for the console market in the style of a Japanese animated film and employs six full-time staff and eight contractors.

Onisoft hopes this will increase to between 12 and 15 full-time employees when it secures financing for full development for the project.

Mr Dolhai said: "To bring the innovative games we develop to life, we seek and identify new and undiscovered talent. Retention of our employees is one of our core strategies as they are the pillars of our success.

"We also have a close relationship with the University of Teesside that provides us with resources and support, which are second to none."