Microsoft yesterday struck a deal with games maker Electronic Arts that could kickstart a growth in online gaming.

The agreement to put Electronic Arts games on to Xbox Live ends a long running feud between the two companies.

The games maker will release more than a dozen games, including sport-based titles such as the NFL, to the software firm.

Electronic Arts had refused to support the Xbox Live service since it was introduced in November 2002, citing concerns about the business model.

Microsoft charges users a subscription fee to access the online versions of its games. Sony's PlayStation remains the market leader in the games console market by a wide margin.

The company has shifted 70m units. Microsoft has sold about 13.7m Xbox consoles, behind Nintendo, which has delivered 14m of the GameCube.

Online gaming is growing rapidly in popularity and has led to the growth of internet cafes devoted to playing games such as Counter-Strike. There has also been a growth of semi-professional tournaments in countries such as the US, South Korea and Sweden.

According to Jupiter Research about 58m people play online games, with that number set to reach 113m by 2007.

Microsoft chief Xbox officer Robbie Bach sealed the agreement by shaking hands with Electronic Arts president Don Mattrick in the presence of Muhammad Ali and St Louis Rams running back Marshall Faulk.