Game cuts sales forecasts

The group, which has 610 stores in the UK and Ireland, expects like-for-like sales for this year will be “no better than” a 7 per cent fall, having previously said they would drop by no more than 3 per cent.

Game blamed “extraordinary” economic conditions and said the overall video games market remained very challenging despite recent launches.

It opened some of its stores at midnight this month for the latest Call of Duty game, which sold 6.4 million copies worldwide in the first 24 hours of its release.

With City analysts cutting their forecasts, Game’s shares slumped more than 20 per cent today and have now dived by 80 per cent since the start of the year.

Investec Securities analyst David Jeary said Game’s latest profits warning did not bode well for the rest of the retail sector ahead of the Christmas season.

He added the industry was also suffering from the absence of new hardware.

Mr Jeary said: “Software launches have apparently been going well, but tailing off faster than historically. With no new hardware coming through and an obviously weak consumer market, we are placing our forecasts under review.”

Game also warned its margins were being squeezed as it cuts prices to drum up trade.

Its like-for-like sales in the UK and Ireland were down 10.5 per cent in the 41 weeks to November 12, although it said it has outperformed the wider market.

Chief executive Ian Shepherd said: “The overall video games market remains very challenging, despite strong title launches, and our guidance today reflects the extraordinary economic times in which we are operating.”