A new generation begins when a few important criteria are met. A new console is launched. That console is a major leap in hardware capabilities. That console generates enough sales to be a successful platform. These are all that is needed. The first one is really obvious the other two not so much. A failure on either front means the console will be of the previous generation.
Once that console is cemented it is then determined that its launch date marks the beginning of a generation. Everyone being at the party is not a requirement, and you do not even have to wait for the last player to show. This generation started with the launch of the 360. That is not the same as the war began in earnest, but that isn't what a generation is about. It is about separating one group of hardware and software from another.
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