Computer entertainment group Game is on Seymour Pierce’s buy list following an encouraging update from US counterpart Gamestop.

Seymour Pierce met Game’s management and, although it has reduced its 2010/11 profit forecast by £5m to £80m, expects a “relatively strong” pipeline of new games to help, as well as a hardware sales boost from the launch of Microsoft’s Natal for Xbox 360 - likely in November.

Game has been rationalising its UK portfolio and is likely to review some overseas businesses. The broker said: “It will consider whether to dispose of its operations in France, where it is the fifth largest games retailer, and in Australia, where it is in the early stages of development.”

However, Arden downgraded Game from add to neutral following the retailer’s share price improvement over the last fortnight. It said: “The message from Game was that UK trading is still very weak.”

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