Electronic Arts Fizzles Out

Updated from May 3

Times have been tough for the video-game industry of late.

Electronic Arts (ERTS Quote), the leading game publisher, predicted on Wednesday that things aren't going to improve anytime soon.

Indeed, the company said earnings for the fiscal year it just began would fall for the third straight year and come in far below analysts' expectations. The company's outlook is only the latest sign that what was supposed to be a relatively smooth transition to new game technology is proving to be anything but. ...