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I have always seen the Gens like this myself.

Gen 1  the Home console Revolution
Gen 2 Gaming Evolution   
Gen 3 The 8-bit Era
Gen 4 The 16-bit Era, The 2D swansong or so meany thought, the NEO-GEO AES was 24-bit if I remember correctly
Gen 5 The 32/64-bit (3D Revolution), but 2D just refused to die
Gen 6 128-bit era (3D mainstream era) and still 2D refused to die and the best 2D hardcore fighters are arguably from this era eg GG, SFIII 3rd Srike. 
Gen 7 the Experimental HD Gen.

Gen 8 will be the true HD Gen



Japanese Pop Culture Otaku