Shares in Game Group were down on the FTSE All Share in morning trading after the computer games retailer reported a fall in sales in the 44 weeks to 4 December, despite new releases like "Call of Duty: Black Ops" and "FIFA 11".
During the period total sales dropped 8.8 per cent while like for like sales fell 7.9 per cent. In Britain and Ireland total sales declined 14.7 per cent while like for like sales were down 12.2 per cent. Internationally the group did slightly better with total sales rising 1.2 per cent but like for like sales falling 1.5 per cent.
In the last 18 weeks sales have continued to decline, despite the recent release of "Call of Duty: Black Ops" and "FIFA 11", which have broken records as the fastest selling computer games ever. The last 18 weeks saw total sales drop 7.8 per cent and like for like sales fall 4.6 per cent.
Game said that it a very strong market share of Microsoft's Kinect product but added that in all of its markets it faced stiff competition from other retailers.
The group said that it was still focusing in cost controls and expected to make seven million pounds of operating cost savings this year.
With Christmas ahead Game said it was "cautious" about its outlook for the holiday and gift buying season but added that the Christmas period usually provides more than a quarter of its annual revenues.
Peter Lewis, the Chairman of Game Group, said, "We have been encouraged by the like for like sales trends we have seen since the half year. The difficult market has benefited from a strong launch schedule of new software titles and peripherals, and we have remained committed to our focus on market share."
By 11:15 shares in Game Group were down 6.23 per cent on the FTSE All Share to 67.75 pence per share.