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See, neither you nor I nor Sony nor Nintendo gets to define what a generation is.  The marketplace defines what a generation is.  The marketplace defined the Wii as a next generation system even though it's hardware was about as powerful as a Gamecube.  The Wii was the successor to the Gamecube according to the marketplace.  It also competed with the PS3 and XBox360 according to the marketplace.  During the first 3-4 years the Wii sold fantastic and the other 2 consoles sold slowly.  About the time that Wii sales plummeted, the PS3 and XBox360 started to take off.  This is not a coincidence.  They were competing.  The marketplace put them in the same generation.  Your logic isn't consistent.  In one sentence you say games define a system, and then in the next sentence you are talking about the power of the hardware.  Which is it?  Is it the games or the power of the hardware?  This also ignores the fact that in the past, generations were not really defined in either way.

The marketplace has already put the Wii U, XB1 and PS4 in the same generation.  The PS4 has already won generation 8 in the home market.  The 3DS and Vita were in the same generation.  The 3DS has already won the generation 8 handheld market.  The marketplace is also treating the Switch as the successor to the 3DS and Wii U.  The Switch is not selling like a generation 8 system.  It is selling like a generation 9 system.  It's not competing with any other system on the market, because it is the only generation 9 system on the market.

This. I never get why people don't understand what the word generation means. It's a time period.

Wii/PS3/X360 all were sold during the same time period. Switch/PS4/X1 were sold in the same time period.

If we want to talk about technology, well, then that means all consoles are several generations old, because PC is generations ahead. But that's not how we should be talking about generations when it comes to tech. We actually don't because we refer to Switch/PS4/X1 as current gen.

There's context and if technology is part of it, it's only relative to the brand. Wii was a more powerful Gamecube, and WiiU was a more powerful Wii. There are still generations of consoles here despite Wii not being technologically competitive with PS3/X360. Switch is a new generation of Nintendo's tech and it sells at the same time as PS4/X1. So it's current gen. Simple.