This paper analyzes contemporary Iranian video games and explores the ways in which they communicate different concepts of identity. It is based on a content analysis of more than 20 video games developed in Iran between the years 2005-2009, alongside interviews with 7 different Iranian game producers. It will analyze various audiovisual signifiers in Iranian video games, including their narrative and game play structures. The research methodology encompasses recent trends in cultural studies, computer science, and game studies. Substantive portions of the materials considered in this paper were gathered during a fieldwork trip to Tehran in 2008. Video games are a form of mainstream media for Iranian youth, and have become a popular leisure time activity. These games provide them with various cultural symbols, myths, and rituals, which then become a constituent part of their identities. At the same time, most games on the Iranian market are developed and produced in the United States and Europe. Unsurprisingly, the Iranian authorities are particularly concerned about the negative influence of such games on Iranian youth. Therefore, they established the National Institute of Computer Games in Tehran in 2006 in order to subsidize development of games in Iran, conceived in accordance with Iranian and Islamic values. Consequently, a variety of independent producers have become involved in this emerging industry. Capitalizing on the Bogost’s notion of ‘procedural rhetoric,’ this paper will analyze contemporary Iranian video games and explores the ways in which the identity of the hero, i.e. the virtual representation of the player’s self, is constructed. Essentially, it argues that whereas the Iranian government perceives games as a new semiotic language of the youth and therefore utilizes them to promote Islamic values and foster national pride, many independent producers maneuver within the and around state’s interests, presenting instead their own, oftentimes quite different concepts of identity. Therefore contemporary Iranian games encompass a broad variety of topics, ranging from the Islamic revolution through popular soap operas to ancient Persian mythology. The resulting concepts of identity are achieved through sensitive negotiations between the demands, funding and restrictions of the Islamic state and the visions and engagement of private entrepreneurs. Nevertheless, this paper demonstrates that despite varying ideological background, independent and state-funded producers both share a common belief: that they are misrepresented by global video game production and strive to present unique Iranian heroes to their audiences.