A HAMPSHIRE based computer game giant is planning a major sales campaign to try and claw its way back into profit.

Game, a market leader, is fighting back after figures released in its latest six month report show losses of £18.8m compared with profits of £14.5m a year earlier.

It has already shut 42 outlets and concessions since April and plans to axe another 85 to leave it with 550 outlets in the UK by Christmas 2013 as part of a major restructure.

Bosses of the firm claimed fierce competition from supermarkets had been a factor in the losses.

The store will be pulling gamers in with cheaper deals on pre-owned products, exclusive promotions for loyalty card holders and trade-ins.

This is part of the recovery plan by new boss Ian Shepherd.

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The former Vodafone retail boss, was hired in June to help revive Game's fortunes after former-chief executive Lisa Morgan stepped down.

Her exit came just six months after she was honoured for her outstanding contribution to the county’s economy at this year’s Daily Echo-backed Hampshire Business Awards.

The company hopes special offers will help boost Christmas sales, when the firm typically makes 25 percent of its sales for the year.

Like-for-like sales in the UK and Ireland were down 7.6 per cent in the 18 weeks to December 4, compared with a 16.2 per cent decline in the first half.

However, internationally store sales rose 0.5 percent.

Bosses claimed there were other positive signs with a good uptake of the Xbox Kinect and games such Call of Duty: Black Ops and FIFA 11 hitting record sales.

They went on to claim sales of second-hand games and consoles were on the rise and will make up 25 per cent of its turnover this year, against 21 per cent the previous year.

However, shares in the firm dropped 6 per cent yesterday after its gloomy news on profit margins.

Simon Davies, analyst at Collins Stewart, said the update was “relatively reassuring.”

He said: “At this challenging stage of the video games cycle, investors should take some comfort from the fact that trading has stabilised.”

The firm employs 9,500 employees worldwide in 1,319 store. It has 470 staff working in 18 Hampshire stores.