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Let me elaborate on generations for you.

First generation.

Magnavox Odyssey • Pong • Coleco Telstar

Second generation.

Fairchild Channel F • Atari 2600 • Interton VC 4000 • Odyssey² • Intellivision • Arcadia 2001 • Atari 5200 • ColecoVision • Vectrex • SG-1000

Third generation.

NES • Master System • Atari 7800

Forth generation.

TurboGrafx-16 • Sega Mega Drive/Genesis • Neo Geo • Super Nintendo

Fifth generation.

3DO • Amiga CD32 • Jaguar • Saturn • PlayStation • Nintendo 64 • Virtual Boy

Sixth generation.

Dreamcast • PlayStation 2 • GameCube • Xbox

Seventh generation.

Xbox 360 • PlayStation 3 • Wii

First generation would actually be four bit gaming. When you reverse the math backwards. I cannot say for certain if the Odyssey was a four bit machine. Probably quite likely when you compare it to the eight bit NES. I think the bit reference is a throw back to a time when each next generation was twice as powerful as the previous one. I am not sure todays machines are actually 256 bit or not. The industry no long seems to use the terminology, and further more exactly where would those bits be applied.