Next-gen console and game sales helped Game Group lift profits 16.6 percent during the vital six week Christmas trading period to January 10, a 5.4 percent rise on a like-for-like basis. Consoles like the Nintendo Wii and Sony’s PS3 sold well, while staff experienced “exceptional demand” for titles like Nintendo’s Wii Fit, with games coming to be seen as a kind of home entertainment that can beat the credit crunch.

International sales were up 17.3 percent in the same period but were down three percent in constant currency terms. Game admits it was helped in the latter part of 2008 by the collapse of high street retailers Woolworths and Zavvi. In the 50 weeks to January 10 Game’s sales increased 24.2 percent with profits expected to be at least £122 million. More details from the earnings after the jump…

—Cautious Outlook: Game may have sold 22 million next gen consoles so far in the UK and expect this demand to continue in 2009—but it is aware that “general economic conditions are likely to deteriorate further” while revenue growth will be “challenging”. The company promises stronger cost management and a more cautious expansion strategy, in contrast to opening 183 stories worldwide last year. Game bought the Gamestation store chain in May 2007 and now expects to save £10 million in synergies for the 53 weeks to January 31 2009, ahead of its earlier guidance of £9 million. So Game may have sold a lot of Wiis and PS3s but it remains cautious for 2009 and the board “.

—2008 results: For the 50 weeks to January 10, Game’s sales increased of 24.2 percent, a 9.5 percent rise on a like-for-like basis, while the company expects profits to be at least £122 million – an improvement on 2008’s £75.5 million. Internationally, across Game’s 1,340 stores, sales increased 28.1 percent with like-for-like sales up five percent. In the same period, online sales increased by 75.1 percent to £99.2 million.

Release.

• Earnings: Game Sales Up, But Growth Slows Ahead Of Christmas