Games giant Electronic Arts is to pay $640 million for VG holding, the company that owns BioWare and Pandemic Studios it has been announced.

BioWare and Pandemic have 10 games under development, including six wholly owned games, EA said in its statement.

"This acquisition gives EA a strong competitive position in key genres in interactive entertainment: action, adventure and role-playing games", EA said in a statement.

BioWare is currently developing Mass Effect, set to be published by Microsoft for the Xbox 360 in November and is in the early development stages of a multiplayer online game due next year.

Pandemic Studios meanwhile is due to release Mercenaries 2: World in Flames and Saboteur in the coming months.