Game UK & Ireland like-for-likes have improved over the Christmas period, declining 0.5%.

This is compared to a like-for-likes drop of 9.7% over the 49 weeks to January 8.

Game said it expects its pretax profit for the year ending January 31 to be within current market expectations of between £37m to £39m.

Total sales dropped  3.3% in Game UK & Ireland over the 5 weeks to January 8. International like-for-likes dropped 4.5%.

Game chairman Peter Lewis said: “Customers continued to shop at Game over Christmas despite a difficult pc and video games marketplace and adverse weather. Our sales trends have continued to improve.

“Our specialists proposition, including the strength of our pre-Christmas deals and post-Christmas Sale offers, provided unique appeal for customers.”

Lewis said the retailer is planning to “deploy our strengths in new areas” next year, which it expected to “remain challenging”.

He said: “Next year will see further innovation in existing formats as well as social and mobile gaming, and a growth in digital and online distribution. Given those developments, we recognise that we need to evolve our business and deploy our strengths in new areas if we are to enhance our position as market leader.”

He added that Game has “maintained strong cost control disciplines over the period” and wiill deliver more operational cost savings than the £7m previously outlined.