CEO Ian Shepherd suggested that declining hardware sales in previous years show that both the industry and customer want to invest in new platforms.
"The weakness in the overall numbers was partly driven by the economy and consumer confidence issues. It was also driven by where we are in the hardware cycle," he told MCV.
"The hardware market was much more negative than the software market. That tells you the industry and the consumer is ready for more innovation there."
He added: "Whether it is in the handheld space with 3DS and Vita or in the home space with Wii U - all of that will excite the consumer in coming back to the games market again."
The UK games market has seen a drop in revenue last year, with 13% fewer sales compared to 2010.
Meanwhile, GAME's shares plummeted by 90% in 2011 despite £1 billion in annual turnover.
Talk of new consoles has increased in the past months, with Sony stating it won't announce the PS4 at this year's E3, and the likes of Rockstar Games and Infinity Ward hiring staff for next-generation hardware.
> New Xbox, PlayStation 4 'to be revealed at E3 expo 2012
Watch the PlayStation 'Michael' advert below: