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__XBrawlX__ said:
This is true, and it was the same thing when the Wii launched. Nintendo could release something that was only marginally more powerful than the Wii, and if they intended to go head to head with the next Xbox and Play Station, it would still be next gen. It's their offering to the next generation of consoles. It doesn't matter how damned powerful the console is. What if the Nextbox is 2x as powerful as the WiiU, and the PS4 is 2x as powerful as the Nextbox. Are they all in 3 different generations? Then how do we categorize them?

In short: A console's generation is determined solely on which consoles it is in primary competition with.
Gen3: NES, Master System, Atari 7800
Gen4: SNES, Genesis
Gen5: N64, Saturn, PS1
Gen6: GCN, Xbox, PS2
Gen7: Wii, X360, PS3
Gen8: WiiU, X720, PS4


Im going to put your comment in the OP since you explained it perfectly