The Christmas season failed to beatify retailer Game Group, as the continuing slump in the computer games market saw a further slide in its sales.

Game's UK and Ireland stores reported a fall of 17.5% in its sales in December and early January despite "a sizable installed base of hardware", representing a decrease from the 16.8% in the 49 weeks to January 9.

Shares in Game have dropped 6.5% to 99.1p, making it the biggest faller on the FTSE 250 index. Analysts were disappointed over the falling sales, which shattered their expectations of improving company's sales.

Game plans to tackle the situation by proceeding towards "higher margin new and preowned products". It also hopes to gain from the soaring demand for peripherals such as steering wheels, dance mats and plastic guitars and drum kits, as computer games become more interactive. Also, the company sticks to its optimism and cites an improving scenario in 2010.