Game prepares for slump in the price of consoles

Game expects further price deflation in consoles this year, potentially bringing the Sony PlayStation 2 and Microsoft's Xbox to less than£100 for the first time.

Game deputy chief executive Lisa Morgan said: 'It would be a natural price point to come down to£99. If they (Sony and Microsoft) do that then Christmas will be in great shape.'

Game chief executive Martin Long said price deflation would bring the value of sales down, but believed that volumes will stay flat. He expected Game's performance to be buoyed by strong software releases in the second half, such as Gran Turismo 4 and Grand Theft Auto San Andreas.

Game revealed group turnover up 8.3 per cent to£606.7 million for the year ended January 31. Like-for-likes increased by 2 per cent. Pre-tax profits before goodwill amortisation and exceptionals were up 4.5 per cent to£34.7 million. In the 11 weeks to April 17, like-for-likes fell 9 per cent.