January 2 – Cyberactive Media, publishers of GameWeek, is closed down.July - IEMA (Interactive Entertainment Merchants Association) hosts 3rd annual Executive Summit.March 22 - The Sims overtakes Myst as all-time best-selling computer game, having sold 6.3 million units.Rockstar Games embroiled in controversy for its Grand Theft Auto III and Grand Theft Auto: Vice City video games.SEGA establishes the Sega Mobile division to develop, produce, and distribute video games for mobile phones and PDAs establishes the Business Solutions division to service video game developers and publishers.Game Developers Conference hosts the 2nd annual Game Developers Choice Awards.Gama Network hosts the 4th annual Independent Games Festival (IGF).G4 Media, LLC (subsidiary of Comcast Corporation) launches the G4 cable television video game network channel.Eidos Interactive selects Dutch model Jill De Jong as the new digitized Lara Croft character.8th annual E³ (Electronic Entertainment Expo) the 5th annual Game Critics Awards for the Best of E³.Big Fish Games is founded with Paul Thelen as the only employee.

BAFTA (British Academy of Film and Television Arts) holds 5th annual BAFTA Interactive Entertainment Awards for multimedia technologies 10 of 21 awards go to video games awards Ian Livingstone the BAFTA Interactive Special Award.Academy of Interactive Arts & Sciences hosts the 5th Annual Interactive Achievement Awards inducts Will Wright of Maxis to the AIAS Hall of Fame.

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