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For me, it would be the 5th generation.

In particular, 1998 was the peak of gaming. I will list some of the following games to demonstrate my point:

-Resident Evil 2

-Panzer Dragoon Saga

-Xenogears

-Parasite Eve

-Starcraft

-Banjo-Kazooie

-Metal Gear Solid

-Spyro the Dragon

-Fallout 2

-Grim Fandango

-Turok 2

-Half Life

-Ocarina of Time

-Starcraft: Brood War

-Baldur's Gate

-Suikoden II

-Sonic Adventure

And I'm sure other people could list dozens of other great games, like Unreal and Star Wars: Rogue Squadron. That year alone makes it my favorite generation.