This paper is concerned with the problem of designing a robust observer-based controller for discrete-time networked systems with limited information. An improved networked control system model is proposed and the effects of random packet dropout, time-varying delay, and quantization are considered simultaneously. Based on the obtained model, a stability criterion is developed by constructing an appropriate Lyapunov-Krasovskii functional and sufficient conditions for the existence of a dynamic quantized output feedback controller which are given in terms of linear matrix inequalities (LMIs) such that the augmented error system is stochastically stable with an performance level. An example is presented to illustrate the effectiveness of the proposed method.