I've always viewed it as the next in line. As long as it was new hardware and not an add on for the current or previous system, then it's the next generation of that brand's console. The confusion occured when people started using the power of the machine as the basis. For example, people have said that the Wii U is competing with the 360 and PS3, but in reality, it is part of the generation with PS4 and XB1.
Interestingly, we are approaching/are in the digital era, where streaming is feasible for many and content can be purchased, obtained and played from the comfort of one's home. This has console developers thinking about ways to cash in on that with minimal expense, such as ending the era of the physical console, and leaning towards PC based apps like Steam.
The Carnival of Shadows - Folk Punk from Asbury Park, New Jersey
http://www.thecarnivalofshadows.com
