The Redwood City, Calif., based publisher of popular videogame titles, like "The Sims" and "Madden NFL", Electronics Arts, on Monday extended a disappointment among investors, revealing that its earnings in its current quarter would likely be half of what analysts estimated.

It posted a 25% revenue drop to $1.2 billion in the quarter that ended Dec. 31, down from $1.7 billion the previous year. Its net loss for the quarter slipped to $82 million or 25 cents a share compared with a $654-million loss or $2 a share, the previous year.

Shares of Electronic Arts Inc. decreased by more than 8% in after-hours trading Monday following the video game company's announcement of its third-quarter results and lowering of earnings projections as the game industry still faces a hard time midst of economic downturn.

"They misjudged the extent of the economic downturn, as did the rest of us", said Michael Pachter, an analyst with Wedbush Morgan Securities

Eric Brown, the company's chief financial officer, cautioned that sales of disc-based games sold at retail stores could lower by 3% this year, because of which the company speculates its per-share earnings for its fiscal year ending March 31 to land between 39 and 43 cents, down from the estimate of 40 to 55 cents that EA executives gave just four weeks ago.