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gen·er·a·tion  / Pronunciation Key - Show Spelled Pronunciation[jen-uh-rey-shuhn] Pronunciation Key - Show IPA Pronunciation
1. the entire body of individuals born and living at about the same time: the postwar generation. 
2. the term of years, roughly 30 among human beings, accepted as the average period between the birth of parents and the birth of their offspring. 
3. a group of individuals, most of whom are the same approximate age, having similar ideas, problems, attitudes, etc. Compare Beat Generation, Lost Generation. 
4. a group of individuals belonging to a specific category at the same time: Chaplin belonged to the generation of silent-screen stars. 
5. a single step in natural descent, as of human beings, animals, or plants. 

It can be said that Wii use last-gen technology in term of cpu and graphic card but it cannot be said that Wii is last-gen as gen basically refer to the time of the console release.

If a console of the technology of a sega saturn is release tml, it will still be a console of this gen