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d21lewis said:

They sorta never made sense.  In the past, they could be defined by hardware power (16-bit, 32-bit) but even then, there were always lesser known consoles launching all of the time. Sometimes, they'd even be a generation ahead, as far as power and still be part of a gen that started years before.

It's just another non-existent thing that we use to define a certain period in time.  There's no official rules, criteria, time span, or logic.  

He said it better than I could have.

You could try and name generations not by its hardware characteristics but from the standpoint of wheter the company behind it shows full support their own console with no other product of higher specs competing with it or not. It's not perfect but better non the less.

We are still to see what Project Cafe really is but I get the feeling that they will try it to be:

  • worth it enough for those in wii userbase who were considering on upgrading to an HD console, both for the graphics and as for the 3rd  party jewels Wii missed.
  • innovative and atractive enough in its social emphasis to be attractive to people who are not traditionally gamers
  • atractive enough (yet not necesarily powerful) to give good battle even if considerably upgraded hardware is released by Sony and Microsoft 2 or 3 years after.