Electronic Arts Inc. lowered its fiscal-year guidance for the second time in two months as the big videogame publisher continues to suffer from a lack of compelling titles.

The company's warning comes as Electronic Arts, which has some of the highest development costs in the industry, is downsizing to focus on fewer games amid an industrywide slowdown in sales.

The Redwood City, Calif., company blamed its latest warning on weakness in Europe in December and a shift to lower-margin products in the latest quarter, primarily in North America.

The warning reflects how the videogame industry's top two to three titles are selling well at retail, but nothing else is, said Signal Hill Group analyst Todd Greenwald. Activision Blizzard Inc.'s "Modern Warfare 2" and other big-selling titles "are sucking the air out of the rest of the market," Mr. Greenwald said.

Because Electronic Arts doesn't publish as many top-selling titles as its rivals do, the company, known for its Rock Band and Madden videogame franchises, is especially susceptible to the recession-driven trend of consumers not spending their entertainment dollars on videogames that fall below blockbuster status, according to analysts.