In a deal which has cost Electronic Arts $275 million in cash, the giant video games maker has acquired Playfish, creator of popular social networking games like "Who Has the Biggest Brain" and "Pet Society". With the acquisition, EA is now looking to break into the online gaming scene, as dwindling customer confidence has hurt off-the-shelves video games sales.

As confirmed by EA, in addition to the upfront cash payment which will be made immediately, the company will pay Playfish $100 Million as and when it reaches some financial targets the firm has set for itself through December 2011. Also, $25 Million will be given in the form of equity based retention agreements with EA's employees.

Online social games have lately become much popular with millions of users playing the same on platforms such as Facebook, MySpace and the iPhone, among others. According to data shared by Facebook, as many as 100 million active users play these games, about one third of the total registered and active users of the site.

Hurt by the economic downfall and slipping video games sales, acquiring Playfish might just be the thing for EA to start climbing the success ladder again. As a part of the company's new business plan to focus entirely on successful games by some restructuring, EA has announced that it might axe as many as 1,500 jobs.