Entertainment retailer Game has posted a 67% fall in first half profits but said trading had returned to more “normal” levels after last year’s record-breaking software launches.

The retailer which generates most of its profits in the second half of the year, had a bumper period in 2008 with the release of Mario Kart, Wii Fit and Grand Theft Auto IV.

Game posted pre-tax profits of £10.8 million for the six months to July 31, down from £32.8 million in the same period last year, while like-for-like sales fell 16.3%.

Chairman Peter Lewis said the retailer had outperformed the market, helped by the growth of its second-hand games business - with sales up 12.3% - as consumers seek out value in the recession.

Recent manufacturer price reductions on the Microsoft Xbox 360 Elite and Sony’s new model Playstation 3 were also said to be “helping to stimulate the market for hardware”.

“Whilst we recognise that we are operating in a challenging wider economic environment, the sales performance of the limited number of AAA new software releases in the first half gives us continued confidence in customer demand for video game products,” he said.

 

 

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