Shares in GAME Group down by half following forecast reduction

Shares in the GAME Group have gone down by more than half after it lowered revenue forecasts last week.

Five days after announcing the reduction in its forecasts, shares have plummeted 57.7%, down from 15.75p.

Last night, prices were as low as 6.66p, according to Edge.

GAME CEO Ian Shepard said last week that, despite the decline, the company had still "outperformed the market, reinforcing our position as market leader."

Analysts have predicted that the launch of Wii U and PlayStation Vita, as well as the potential announcement of a next Xbox, may help GAME next year.

"While the market backdrop is poor, Game continues to take market share. Digital revenues are up 40% YoY, store closures are on track and conversion, pre-owned sales and multi-channel have made progress this year. For 2012/3, the Nintendo Wii U will provide some much need momentum to the hardware cycle, with expectations of a new Xbox being announced next year also building," said John Stevenson of Peel Hunt.

"Longer term strategy continues to make sense, but it is difficult to see when the short term pain ends," added Execution Noble's Sanjay Vidyarthi.