Terms of the agreement were not disclosed.

Studio 33 is known primarily for games created for the console including Formula One, Newman-Haas Racing, and Destruction Derby Arenas. Those games, developed for other publishers, are not part of the transaction.

EA, the world's foremost developer and publisher of interactive entertainment, has 4,000 employees, including roughly 2,300 creative people in its worldwide studio organization. EA makes games for all major platforms and last year published 22 titles that sold more than one million units worldwide.

"I couldn't be happier with the calibre of talent that will join EA in this agreement," said EA Executive Vice President Bruce McMillan. "The new team is already working on several projects that will be announced in the future. I predict that very shortly, EA Northwest will be a globally recognized powerhouse of interactive entertainment."

The primary focus of development at EA Northwest will be driving games. EA UK General Manager David Byrne will oversee the new studio. Studio Manager Chris Gibbs will lead development and John White will serve as head of the Technology Group.

"The North West of England is a creative centre that will continue to grow and gain recognition," continued McMillan. "There are more than 2000 active developers in the region and a cluster of globally recognized universities and art colleges supplying an on-going talent pipeline. This is a great place to make videogames."