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DerNebel said:

@kupomogli: I disagree, aside from certain all time classics I feel that games have generally gotten better every generation.

@Degausser: This graph is not really supposed to represent crossgen titles, but rather games exclusive to their respective gen

Certain genres I'll agree with you, but I'll give a few examples

First person shooters in the late 90s do more than you can do in the current gen of FPS and are better.  Unreal Tournament, Quake 2.

What about Warcraft style strategy games.  Age of Empires 2, Warcraft 2, Warcraft 3, etc.  For games that play alike, there's nothing this gen that really compares to these games.

Platformers.  New Super Mario Bros U is lackluster compared to a lot of past games.  Little Big Planet 2 is better, but even it's not as good as many older titles, and it's not just "a few all time classics," it's a lot of classic games that are better.

RPGs.  2002 saw the release of Morrowind, and while I think of this as an action/adventure more than an RPG, you can't really say that Oblivion is much different.  Skyrim has additional features but what's different other than graphics?  The SNES and PSX have many RPGs that are better than current gen titles even though graphics are better and you could potentially get more ideas across. 

Simulation racers, open world racers, and arcade racers.  Aside from open world games and simulation racers, racers in the past are comparable to this last gen racers.  Need For Speed Hot Pursuit 2 on the PS2 is better than Criterion's Hot Pursuit.

The next gen can perform more and potentially push out a better quality of game, but does it always happen?  No.  I've seen more classic titles or games that could have been developed on classic consoles than last gen games in the VGChartz 2013 top 50.