Tough times in the technology market have hit online firm Gameplay involved in talks which could lead to its break up.

The company was set up by former Bradford Grammar School pupil six years ago with a £2,000 grant from the Prince's Youth Business Trust.

But a plummeting share price led first to informal discussions with third parties about the future of the company's boxed games and technology divisions and now the appointment of Commerzbank Securities to assist in a review of operations.

Last March Gameplay's share price stood at £10.80 but this morning it had sunk to 16.5p.

Two months ago the company announced a restructuring aimed at steering it towards profit, part of which involved cutting 275 of its 700 European workforce.

A company spokesman said it hoped to report developments to shareholders by April 30.

He added: "The board remains committed to positioning Gameplay at the forefront of digital delivery of games, but is equally committed to maximisation of shareholder value particularly in light of stock market conditions and the company's current share price.

"It believes that the current market valuation does not reflect the true underlying performance or potential of Gameplay."

The company, with offices in Leeds, sells games direct through the internet, digital television and mobile phones.

It sees digital distribution of products, though, as the future with potential customers allowed to try out games as they are made level by level.

Mark Bernstein, chief executive, added the company was being pragmatic about its future.

He said: "When someone approaches you, you have to give it consideration, particularly with the share price as it is at the moment."