Capcom says its game engine is ready for next generation consoles.

Resident Evil 2

Resident Evil 2

The developer has insisted it is well-prepared for the latest technological advances from Microsoft and Sony, and that the RE Engine used for the 'Resident Evil' titles was designed from the beginning to be easily tweaked for future hardware.

Speaking during a recent earnings report, management said: "The games we developed using the RE Engine during this current hardware generation have received critical acclaim, and from the early stages of building this engine, we kept the ability to augment it for next-generation development in mind; as such, we view the RE Engine as one of our strengths that will contribute to next-generation game creation."

It's thought that Microsoft will announce details of at least one next-generation console at E3 next month, while Sony will not be at the industry expo but has still shared the first details of what will likely become the PlayStation 5.

During an earnings call, GameStop CFO Rob Lloyd suggested "new hardware" could be coming soon.

He said: "With respect to new hardware, as we get closer to the end of the current console cycle for Xbox and PlayStation, we expect demand to decline as some customers choose to wait on the sidelines in anticipation of acquiring the next generation of innovative consoles."

He was talking about certain business elements that the company shared with analysts in order to "help provide context" for the rest of the year.