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We're in the 8th gen but the 7th gen is still going on. Why does it have to end so suddenly? Anything that the Xbox and Playstation do as far as sales, games, innovations, etc. still count. Hell, the Gameboy lived for like a decade while "next gen" portables came and went (including its own successor, the Gameboy Color) and it still sold, broke records, and kicked ass.

As long as the 7th gen remains relevant, it's still alive.