Computer and video games retailer Game is pinning its hopes on a decent Christmas after reporting a jump in half-year losses today.

Game blamed a combination of a cyclical low point for the games sector, as new hardware is developed, and the tough economic backdrop as 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 ten 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 will remain "tough" but added the group is 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.