Last updated 11:51, Wednesday, 01 October 2008

A RARE note of cheer has emerged from the High Street after computer games retailer Game raised sales forecasts and delivered record profits.

Doing a roaring trade: Game raised sales forecasts and delivered record profits to bring rare cheer to the High Street

The company, which has branches in Carlisle, Workington and Gretna, saw pre-tax profits jump to £36.4m from £2.7m in the six months to the end of July.

The firm was boosted by its acquisition of Gamestation last year and a like-for-like sales improvement of 22.2 per cent.

Buoyed by the launch of Nintendo’s Wii Fit and Grand Theft Auto IV, the company said its products were being seen as a “more affordable alternative” to many other family leisure activities.

For the full year, Game has raised its guidance for like-for-like sales growth to between 8 per cent and 12 per cent, from the 5 per cent to 10 per cent previously estimated.

Game’s share price has fallen in recent months as the Basingstoke-based company faces up to competition from the likes of a resurgent HMV, which is looking to grab a bigger slice of the lucrative games market.

But Game said overall demand remained strong, with the number of current generation consoles in the UK now standing at more than 17.3 million.

It added: “An expanded base of hardware in the market leads to more software being sold, both to the more traditional gamer and to new customers entering the market.”