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Generations aren't horse races where one come to a stop before another begins. They also aren't like human generation where although multiple can be alive at a time they have cut off dates.

Do people refer to the count of sales of a generation as a the total? or just the total up to when the next console was released?

When the hardware and software of the last gen are still significantly outselling the new one. It's pretty clear that there is not some cut off but time for the transition to take place.