The Wii U is actually the first step outside of the generational cycle. The PS4 and XB1 both are much more powerful, but they remain bound into the console generation by their designs. They still compete with other consoles and entertainment center functions over the TV screen.
The Wii U, though, has a gamepad which adds functionality to any entertainment center, even if it already has other consoles in it. Forget working well with the PS4: the Wii U can naturally coexist with the Playstation 7.
The only problem I have with the Wii U as a gen 8 console is that it really needed an expansion pack slot like the N64. GPU and CPU stats are "good enough" but developers will feel squeezed by 2GB of RAM by midlife. That, and the expansion pack model would certainly work better with today's video game market and a 10-year cycle than it did in the 90's with a five year cycle.
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