Video game retailer GameStop believes that the next generation consoles from Sony and Microsoft will allow for retail trade-ins and used game sales, despite rumors to the contrary.

As part of an investor meeting with analyst firm Baird Equity Research, the company said that the new consoles will support used games, with no systems in place to lock out used game sales.

GameStop is looking to boost its ongoing financial results through expanded used game sales, along with a strong line-up of game titles for the rest of the year, including for Nintendo's Wii U.

Colin Sebastian from Baird Equity believes that the next consoles from Sony and Microsoft will arrive in late 2013, and will focus on innovation in online services over significant graphical improvements.

Flexible revenue models are on the cards, he said, with systems in place to allow free-to-play games with micro-transactions.