Demand for Grand Theft Auto IV and Wii Fit has sent profits at Game Group soaring - and it's not just teenage nerds behind the buying.

The computer games specialist today said results will beat City expectations - a rare piece of good news for the retail sector.

Although other shops such as HMV are expanding into Game's territory, it remains the leading computer software retailer for the moment. It has also shrugged off the economic gloom so far.

"Whilst sales are driven mostly by demand for consoles and the quality of new software releases, we recognise the challenges of the wider economic environment," the firm said today, ahead of the annual meeting.

Profits for the six months to the end of July will be at least £33 million, prompting upgrades from analysts. Like-for-like sales in the 22 weeks to 28 June are up 25%.

Nick Bubb at Pali International called the trading update "amazing" and upped his shareprice target to 300p.

Game has added the boss of Google UK to its board. Dennis Woodside joins as a non-executive, with a brief to help the company develop its online business. He previously worked for management consultants McKinsey.

Game's 1200 shops in Britain and overseas are attracting an increasingly diverse audience beyond the stereotypical bedroom-bound teenage males.

The company admits it has benefited from a batch of strong releases lately but expects more excitement in time for Christmas.

"We remain confident about the key Christmas trading season," it said.