COMPUTER and video games retailer Game is pinning its hopes on a happy Christmas after reporting a rise in half-year losses.

Game, which has a store at Kingsgate in Huddersfield, blamed the downturn on a combination of a cyclical low point for the games sector – as new hardware is developed – and the tough economic climate.

Sales slumped by 10.5% to £558.8m in the six months to July 31.

Losses soared to £51.5m from £21.5m as margins also came under pressure after it invested heavily in promotions to get sales moving.

Sales in the second half weakened further, with like-for-like revenues for the 34 weeks to September 24 down by 10.4%.

But the group hopes a new batch of top-ranked game releases in the run-up to Christmas can still turn things around as the group makes 40% of its revenues over the next 10-week period.

Potential bestsellers include football stalwart FIFA 12, wargame classic Call Of Duty: Modern Warfare 3 and stealth game Assassin’s Creed Revelations.

Chief executive Ian Shepherd said trading conditions would remain “tough” but that the group was determined to outperform the market over the rest of the year.

Directors of the group, which has 615 stores in the UK and Ireland, have committed themselves to the recovery by agreeing to spend at least 20% of their salary and fees to buy shares over the next 12 months.