Shares in computer software retailer Game fell as much as 17% yesterday after a sales slump left investors wondering if the previous resilient sector has finally been caught up in the consumer spending downturn.

Shares in computer software retailer Game fell as much as 17% yesterday after a sales slump left investors wondering if the previous resilient sector has finally been caught up in the consumer spending downturn.

Game finally closed at 142p, down 22p, or 13.4%, on the day, after revealing like-for-like sales were down 15.4% in the 21 weeks to June 27.

The company has lost almost one-third of its value in just two months and now has a market cap of just £492m.

Chief executive Lisa Morgan blamed the decline on an exceptionally strong release schedule in the previous year.

She highlighted the list of potentially popular games scheduled to hit the shelves in the second half of its financial year, including Wii Fit Plus, Singstar: Take That, and Forza Motorsport 3.

She added: "Although we have seen further like-for-like declines this was expected, given the exceptionally strong trading period last year, when sales were up 25% on the back of record-breaking launches such as Mario Kart, Wii Fit and Grand Theft Auto IV."

But analysts said the numbers were worse than they had anticipated.

Game had been expected to benefit from the demise of high street rivals such as Zavvi and Woolworths.

This hasn't yet materialised. Instead HMV seems to be capitalising from the turmoil. Yesterday it posted a 12% rise in profit to £63m for the year to April 25.

Game is planning to add another 50 to 60 stores to its 1367-strong chain before the key Christmas trading period. Most will be located overseas.