GAME Group's profits have fallen from £35.5 million to £14.5 million for the six months ending July 31st, a drop of 60 per cent.
The fall is in line with company expectations, while sales have dipped seven per cent to £690.8 million and like-for-like sales were down 16.3 per cent.
Despite the results, GAME enjoyed significant gains online, with a 12.1 per cent rise in revenues. And the firm has seen its Reward Card membership increase by one million customers.
"These were solid results for the Group," said chairman Peter Lewis.
"We have returned to more normal trading patterns where historically we have generated nearly all Group profits in the second half of the year.
"We outperformed markets that showed year-on-year declines following last year's unprecedented sales of hardware and record breaking software launches.
"In the second half, the installed base of third generation consoles will continue to build. The recent manufacturer price reductions on the Microsoft Xbox 360 Elite and Sony's new model Playstation 3 are helping to stimulate the market for hardware. There is a broad and exciting line up of software and accessory products scheduled for all consoles before Christmas.
"The retail environment continues to be tough. In uncertain times, our brand loyalty and our unique specialist proposition have never been more important. This, combined with our strict cost disciplines, the record console installed base and strong software line-up, means we remain optimistic for the key Christmas selling period."