John Carmack of Armadillo Aerospace

Video game developer John Carmack and his firm Armadillo Aerospace are developing vertical launch vehicles.

Armadillo Aerospace, a leading developer of reusable rocket-powered vehicles, plans to build suborbital rocketships for space tourists that launch vertically.

Test shot of Dalek, under development by Armadillo Aerospace of Rockwall, Texas, lifting off from New Mexicos Spaceport America.

An Armadillo Aerospace rocket launches skyward in a Jan. 28, 2012 test flight from New Mexicos Spaceport America.

A balloon-parachute recovery system was deployed during a Jan. 28, 2012 flight of an Armadillo Aerospace rocket.

View of the Rio Grande River valley from 239,000 ft (~50 mi) aboard Armadillo Aerospaces STIG-A 3 rocket launched from Spaceport America, taken January 28, 2012.

An artist's depiction of a suborbital spaceflight offered by Space Adventures aboard an Armadillo Aerospace Vehicle. Seattle's Space Needle is offering a free trip on the spaceship as part of its Space Race 2012 contest.

The STIG A rocket built by Armadillo Aerospace roars skyward from New Mexicos Spaceport America on Dec. 4, 2011.

View of Earth above Spaceport America from Armadillo Aerospace's STIG A rocket flight at apogee (highest point) on Dec. 4, 2011.

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Gallery: Armadillo Aerospace Builds Rockets in Texas