So, GAME sees growth in sales of 54.1% for the first six months of this year. It declares a record first half gross profit of £36.4m. It's done a deal with Borders that will see Game outlets in 33 of the bookstores. Its assimilation of Gamestation is even going ahead without a vast amount of bad press or bad mouthing among gamers. It even managed to acquire the Czech company, JRC, gaining 19 stores for 3.95 million pounds on Aug 21 without much fuss.

It all sounds bright and cheery to us. But there are, as ever, clouds on the horizon. At least according to Altium Securities analyst David O'Brien quoted by Bloomberg thus, "We have taken a view that discounting is likely to enter the market in the run-in to Christmas.

"On the basis of discounting, we think the sheen will be taken off Christmas trading and therefore retain our sell recommendation.''

That's right... financial analysts - who we are well aware have been totally on the button for decades - don't like the idea of cheaper consoles before Xmas. This is, of course, because once one store starts price slashing hardware, everybody else has to follow and this will inevitably lead to a drop in profits going to shareholders. It's the shareholders who count the most remember.

^{Sources:
Bloomberg
MCV}