Are video games just propaganda and training tools for the military?

It's a shadowy and lucrative relationship. But just how close are video-game developers with various military outfits? And how does it affect the games we play?
http://www.guardian.co.uk/technology/2012/mar/18/video-games-propaganda-tools-military 

• ""By the late 1990s," says Nick Turse, an American journalist, historian and author of The Complex: How the Military Invades Our Everyday Lives, "the [US] army was pouring tens of millions of dollars into a centre at the University of Southern California – the Institute of Creative Technologies – specifically to build partnerships with the gaming industry and Hollywood.""

• "... Kuma Games site, an online entertainment developer and, according to reports on Iranian television, an international distributor of military propaganda. Kuma produces a range of games, from second world war air-battle shoot-'em-ups for the History Channel, through to the carnivore-themed I Predator, a tie-in for the cable station Animal Planet. Yet it's the company's Kuma\War series of topical military games, as well as a more discreet line of Arabic-language first-person shooter games, that have piqued media attention. During a televised confession on Iranian TV, alleged US agent and former marine Amir Mirzai Hekmati said he had worked for Kuma, and it was a CIA front company."