Game Group has reported a 10.8 per cent drop in sales for the 44 weeks ended December 5, 2009.
The retailer’s UK and Ireland sales were down 14.3 per cent, while its international business saw sales decline by two per cent.
“Recent console price cuts from Sony and Microsoft have increased demand, though revenues from increased unit sales of these formats have not offset the overall fall in hardware revenues,” said Game chairman Peter Lewis.
“Since the half year, there have been a number of major software releases including Call Of Duty: Modern Warfare 2 and FIFA 10, which both broke records in their first week of launch. However, the exceptionally strong performance of these titles was in part offset by softer than expected sales of some other releases.
“We have seen strong competition in all of the markets that we operate in. In the UK, in particular, we have seen significant pricing activity from the supermarkets. However, our overall year to date market share position has improved due to the strength of our consumer proposition, including our trade-in offers, loyalty card discounts, breadth of range and specialist staff. Our pre-owned business has continued to perform well as it offers real value for our customers, particularly in the current economic climate.”
In line with previous guidance, Game opened 43 new stores in the second half of the year, taking its tally of stores to 1,406.
Lewis said that Game is continuing to invest in the development of its online business, noting that the company is the “only UK entertainment retailer to offer a download service for pc games, with nearly 700 games available”.
The company said that the next eight weeks, covering the key Christmas period, usually account for 25 per cent of its annual income. Game will report its sales results for the period on January 12.