A good article on this is on Businesswire.

But in rough summary, EA games has bought BioWare and Pandemic Studios for 810 million dollars, 620 million for the stocks of VG Holding, the owner and investor of both companies, 155 million for select employees of the companies, and EA is loaning another 35 million for VG Holding until the deal is finished, which is predicted as January 2008.

What the article failed to mention was the past history of EA acquisitions: Origin, Westwood Studios, and Bullfrog. Origin produced the name brand series of Ultima. Westwood Studios produced the Eye of the Beholder series, Lands of Lore series, Dune II, The Legend of Kyrandia series, and most notably the Command and Conquer series. Bullfrog produced the game series Populu and Magic Carpet. What ever happened to these companies, well they were all bought by EA games, for the licensing rights, and then EA producer subpar game after game under the series titles until either the budgeting for the companies was consolidated with their region teams (Bullfrog and EA UK division) or EA closed down the division entirely claiming the divisions became unprofitable (Origin and Westwood Studios).EA does this same strategy for their own original titles: Need for Speed, and, potentially, Burnout.

In many ways it is very predictable what the future holds for BioWare and Pandemic Studios. As those who read my other articles, particularly, the one below about Sony and Square-Enix, already knows my position towards monopolies, but granted I would gladly take the Square-Enix monopoly over the EA monopoly any day. Square-Enix, at least, believes in the quality of their games, while EA is a purely money driven corporation.

Let us take a moment to contemplate on the Tree of Woe, as to what made BioWare and Pandemic Studios great. BioWare, a Canadian company, was started in February 1995; they produced several games including Baldur's Gate and Neverwinter Nights. Pandemic Studios was formed by former Activision employees in 1998, and produced Star Wars Battlefront in 2004. The companies were both bought by VG Holding, in November 2005, and given 300 million dollars for investment. However, what made this merger successful was that the companies maintained separate, as far as divisions, employees, etc. and given the funding and freedom to make successful high-quality games.

If only EA understood this, unfortunately, it seems as if the companies will not maintain their freedom, and like likely fall to the far side, like its predecessors.

-Lucavi_Kalera