COMPUTER game retailer Electronics Boutique blamed a price war for sliding profits.

The firm, which owns two shops in Blackburn and one in Burnley, saw pre-tax profits fall to £2.8million for the year ending January 31 compared with £15.3million last year. Turnover increased to £251million from £159million during the period.

The company blamed "severe discounting" across its range but especially in PlayStation products for the fall. Electronics Boutique also took over the Game chain of rival stores last year which took its total number of shops to 299.

Chairman Peter Lewis said: "We completed the integration of Game in time for the vital Christmas season, only to be plunged into the heaviest price discounting war in the history of our industry." John Steinbrecher, chief executive, said: "Our vision is to bring our high street store into everyone's living room.

"Customers will be able to purchase anything from PC accessories to education and reference software and video games."