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The 3rd gen for developing the NES, a console with wonderful new controllers and, most importantly, software that was a big part of making home gaming a permanent form of entertainment after the video game crash of '83.

Next is the 7th gen, as it's pretty hard to argue with what the DS and the Wii brought to gaming with touch and motion controls, respectively.

Finally, I'd say third place goes to the 5th gen with N64, simply because of the controller (analogue stick, rumble) and mastering Z-axis gaming/cameras with Super Mario 64.