So Last generation still has not ended then?  Interesting.  In terms of profits for the company, sure no big deal, but the "gen" is over.  It ends the day all the new consoles for the next gen are released.

I would say the last generation is over when all of the players for the following generation (Lets just say : Nintendo/Sony/Microsoft)  have ALL released new consoles.  Not when one company stops making them or makes a new console as some people have suggested.

Well people just like to assume that next generation will somehow have to play out the same way this generation has.  With Sony releasing third and Nintendo and Microsoft beating them to the punch.  People seem to believe that Microsoft/Sony/Nintendo will be jumping the gun to release a new console.  I tend to view this totally differently.   I think this might be one of the longest generationswe've seen in awhile.  

It counts for money to the company, but it does not count as "winning" the generation since that has long ended.

As is the case with these types of sales.  Eventually the PS3/360/Wii won't be nearly as popular as they are now and will eventually dwindle down to lower amounts of sales.  The primary reason these companies release new consoles and new systems is for this reason.  If Sony made a system that was viable on the market for 14 years and Nintendo and Microsoft made a system that was viable for only 11 years.  Sony still could feasibly win the 'generation' as they managed to capture audiences for a longer lifespan. 

I don't think you can win if the race is already over.  That's like saying that you ran a race with two other people, and they both finished 3 minutes ahead of you, but you finished the race and took an extra 10 meter jog so you win?  Doesn't work that way.  They get more sales, and more profits after the generation is over, but the gen ends when the new consoles are released and you can't count it as "winning" the gen anymore.

That's not what this is though.  What you're trying to say is :  Three racers lineup and decide to hold a race for an indefinite amount of time that only the people in the stands can determine based upon their support of each racer.   If you the people in the stands stop supporting a specific racer,  that doesn't mean the race ends that just means, that specific racer is no longer apart of the race.

You don't get to start a new generation whenever you want. The market determines this.  If the Sony PS3 can still be viable 5 years from now on the market and surpass the Nintendo Wii?  They certainly can claim they won the generation.   I have my doubts that they could actually do this but that appears to be another discussion.

The only 'factor' in having sales is the gross number of sales/profits....Much like the race example the only 'factor' in having a race is continuing onward to the finish line,  So why would either end prior to these stopping.

Yeah if Sony never releases another console for the next 17 years, I'll give them this generations "win", but that is never going to happen.

I'm not saying that is going to happen.  My point is,  is that with a $600 dollar initial price tag  and tons of potential price drops to go through and millions upon millions of current PS2 owners (Still waiting to take that plunge),  the PS3 certainly could be revitalized (Especially with Blu-Ray adoption rapidly on the rise) at least to the consumers.   If something like this happens?  Sony certainly could claim winning this generation. As the design of their product was meant to be as future-proof as humanly possible.

Generations are not some definitive thing here.  The only reason we have them is to make comparisons easier for us. The only reason a generation 'Ends' is because of the consumers on the market.  They ultimately tell the producers when it's time for a new generation. 

If the market leans heavily towards Sony at some point and they see a significant boost of sales? Eventually passing Microsoft and Nintendo? They can claim victory.  

Great post. I agree 100%