Electronic Arts disappointed investors again with weaker-than-expected earnings and revenue forecasts, driving shares of the game publisher lower.

Investors on Monday scrutinized EA's forecast for the fiscal year, after the company—which is struggling with high costs and a lackluster slate of games—had sharply cut its guidance for two consecutive years.

For the fiscal year ending March 2011, EA forecast earnings of 50 cents to 70 cents a share on revenue of $3.65 billion to $3.9 billion on a non-GAAP basis. Both lagged Wall Street's forecast for 74 cents and $4.07 billion, according to Thomson Reuters.

EA had a difficult 2009, slashing jobs and narrowing its game portfolio amid an industrywide slump in video game sales. Investors have also grumbled about the company's leadership, though some analysts say EA's game slate for early 2010 is strong.

EA's pipeline for the March quarter included "Mass Effect 2," "Army of Two" and "Dante's Inferno."

The publisher of "Madden NFL" and "Mass Effect" reported on Monday a net loss of $82 million, or 25 cents a share, in the fiscal third-quarter ended Dec. 31, versus a loss of $641 million, or $2 a share, in the year-ago period.

Excluding items, EA earned 33 cents a share, versus the average analyst estimate of 31 cents a share.

Revenue fell 25 percent to $1.2 billion, while non-GAAP revenue came in at $1.35 billion. Wall Street was estimating $1.34 billion.

For the current quarter, EA forecast non-GAAP earnings of 2 cents to 6 cents a share on non-GAAP revenue of $800 million to $850 million.

Shares of EA fell more than 7 percent in extended trading Monday. Get after-hour quotes for Electronic Arts.

I'm not economics expert, but didn't they actually make a profit but defer some revenue to make it a loss? I could well be wrong though :).

It's a nice turn around, but they need to build n this momentum. For all they've done wrong it does to me look like they're slowly building a decent portfolio of games - albeit I don't think we're going to see them trying much more new outside of a sequel to Mirrors Edge.

Certainly slashed their expenditure anyway.

Those bad results should make Mass Effect trilogy come even earlier to PS3. They deeply need this easy money.

EA is having a really tough time adjusting to this generation's tastes. Their holiday 2010 quarter also looks pretty bad at the moment.

Bad management.

Things like spending more than $2million on a single 90sec ad do not help...

keep the dream alive lol, but it is a 360 exclusive

It's probably not worth whatever they'd have to pay to MS to break the exclusivity clause.  Stuff like Oblivion or Bioshock didn't exactly light up the charts after the fact on PS3.  Plus, Mass Effect (1 more than 2) barely runs well on 360, they'd probably be a nightmare on PS3.

Why would it be a nightmare on PS3???

Because it's already janky on 360, and this is another port removed.  Games not built with PS3 in mind from the start tend not to... let's say translate quite as well.  And the port would likely be pretty expensive and demanding on top of that...

Riccitellio will be fired, it's a matter of time.