A company that creates virtual reality software used to train soldiers opened its new operation in Halifax Tuesday.

Newfoundland's Bluedrop Performance Learning uses the latest video game technology to teach lessons based on real combat situations.

The military simulation company, received a $500,000 Nova Scotia government grant to help it develop simulation software to be used by militaries.

Bluedrop hopes to get contracts from governments around the world looking to provide virtual training to soldiers and aircrews preparing to go into real world danger.

The company says it will create 33 jobs in Halifax to support its venture into the military simulations.

Bluedrop has sold its first simulation units to the Australian Forces, and in the future the company hopes to convert other militaries, including the Canadian Forces to the benefits of what it calls "serious gaming."

The CBC's Rob Gordon reports.