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Game Group Shares Fall 37% Even After Profitable Call of Duty Launch

On Wednesday, shares of Game Group fell after warnings made by the company that despite the huge success of Call of Duty: Modern Warfare 3, sales at retailers will drop dramatically.

Shares of Game Group, which has 610 stores in UK and Ireland, was traded for 7p or 37 percent lower at 12p Wednesday morning after the group stated they are expecting a like-for-like sales for the current year to be "no better than" 7 percent lower than last year. Before this, the company stated they would fall not more than 3 percent.

For this, the company blamed "extraordinary" economic conditions and also added that despite the new launch, the video games market overall "remained very challenging," as reported (opens in new tab) by This is Money.

The latest Call of Duty game sold 6.4 million copies globally within the first 24 hours of its release. In fact, Game Group even had to open some of their shops at midnight due to consumer demand.

David Jeary, Investec Securities analyst, said, "Software launches have apparently been going well, but tailing off faster than historically. With no new hardware coming through and an obviously weak consumer market, we are placing our forecasts under review."