Game playing down its setback as profits dive

Seven million Britons added a games console to their home in the past 12 months, taking the total number of owners to 25 million.

But that couldn't stem a slump at the country's biggest seller of the likes of Sony PlayStations and Nintendo Wiis, which today posted a 59% fall in half-year pre-tax profit to £14.5 million.

Game Group said like-for-like sales at its near-1400 stores slid 16.3% for the six months to July, but maintained the figures were dwarfed by strong comparatives. The same period last year saw the launch of Grand Theft Auto IV, the highest-selling game in the industry.

The retailer said that, as ever, it was dependent on Christmas sales but described current trading as "solid" within a "more normal" game release schedule, where bestsellers included The Sims, Wii Sports Resorts and Pokemon.

Game said it was "optimistic" about Christmas, leading it to hike the interim divi by 5% to 1.88p.

Chief executive Lisa Morgan said: "We are very well positioned for the second half. The upcoming Call of Duty: Modern Warfare 2 could end up being the biggest seller of all time in the industry."