Under the deal, DreamWorks Interactive will become a wholly owned subsidiary of Redwood City, Calif.-based Electronic Arts, a video game developer and publisher, the companies said in a statement.
Financial terms of the deal were not disclosed.
In recent months, Electronic Arts has been busy delivering on its promise to move forward in Internet-based gaming. The company recently partnered with America Online to create and deliver online games and interactive entertainment for AOL properties, including AOL.com, CompuServe, Netcenter and ICQ, through its Internet business division, EA.com. The companies plan to launch the new gaming site this summer.
DreamWorks Interactive, a joint venture by computing giant Microsoft and multimedia publisher DreamWorks SKG, was formed in 1995 to create interactive entertainment software. The company is known for PlayStation video games, such as "Lost World: Jurassic Park" and others.