DMA Design, the US-owned games company employing 60 people in Dundee and Edinburgh, is looking at significant expansion following the parent company's decision to purchase broadband specialists Pixel of Tel Aviv.

DMA, Pixel and fellow subsidiary Rockstar Games will be combined into a new business unit called Broadband Studios. This will focus upon developing games for next-generation consoles such as PlayStation 2, which will allow users to play against people across the globe via high-speed broadband access instead of over slower phone lines.

DMA public relations manager Brian Baglow said the business would likely need to add significantly to its Scottish staff after the three subsidiaries are brought under the same umbrella, a process which should be completed within the next few months.