Shares of Game Group fell 13.4% in London trading as preliminary earnings results for the first half of the year failed to meet market expectations.

"Our sales performance to date, together with our gross margin increases and continued cost focus, means that we expect to deliver first half profits before tax and non-recurring costs in line with plan at between £13m and £16m (2008/09: £36.4m). The profit performance last half year was exceptional and this half year should be viewed in the context of our seasonal business, when customarily all Group profits are made in the second half."

The announcement of a 60% earnings drop in the first half spooked investors in the U.K., which in turn spooked investors in the U.S., sending Gamestop (GME) down nearly 7%.  Gamestop's profit for the first three months announced in late May, however, increased year over year from .37 to .42, or about 14%.  If analysts and Gamestop's guidance are correct for the next three month period, Gamestop profit will be flat compared to last year.  That would be in stark contrast to Game Group reporting a 60% decline in profit from last year in the first half of this year.

Both companies have emphasized that the first half of this year would not compare well to last year's first half, which included Grand Theft Auto IV, Mario Kart and Wii Fit.

In the last three months, shares of Game Group have now fallen 18%.  Shares of Gamestop have fallen 30%.