Computer games retailer Game insisted it was on track for a record performance despite a recent slowdown in sales growth.

In the six months to July 31, Game's sales surged 28.7 per cent as gamers benefited from price wars between console manufacturers.

A string of new games for platforms such as XBox and GameCube bolstered demand in Game's traditionally quiet first half.

Group turnover in-creased 50 per cent to £214.7 million while operating profits before goodwill were £3.1 million, compared with losses last year of £1.9 million.

Game, formerly known as Electronics Boutique, said this was only the third time in its history it had made a profit in the first half.

That, the group said, augured well for what promises to be a record Christmas.

Chairman Peter Lewis forecast demand for hardware would stay buoyant while new games such as Lord Of The Rings - The Two Towers, James Bond 007: NightFire and Splinter Cell were expected to do well.

Since the half-year, however, like-for-like sales in the nine weeks to September 28 grew by only six per cent.

Game said it was pleased with the performance as it compared with a 46 per cent rise last year when GameBoy Advance was launched.

But shares in the group dipped five per cent to 99.75p following the announcement.

The group is planning to open more than 40 outlets in the second half and to trade from 532 shops, concessions and franchises across Europe by Christmas.

In the UK, Game has about 330 outlets, including shops across Sussex.