1: Of course it is, its the beginning of a new console cycle. Don't be silly.
2: Hmm, uncertain of this. Even though the new cycle has begun, neither MS nor Sony have entered the contest so its a difficult question. Then again, not much is likely to change until such as a time as they have entered the race themselves.
The generation is certainly beginning with the WiiU but I say that the 2nd place is decided when the PS4 and 720 hit the market (or whichever one comes first, since they're unlikely to launch at the exact same time).