Hi.
I have a tiny bit of information about the different generation of consoles that were and are capable of displaying full 3d graphics, since the first one until now. I don't include earlier 3d software/hardware because they were an exception, not only in the market but also in their own console (hardware like Sega's 32X and Virtual Boy and software on Sega MegaDrive and SNES). This thread isn't especially focused on handhelds.
- 1st generation:
- Consoles like PlayStation, Sega Saturn and Nintendo 64 were prepared to fully run 3d games. They brought to the market new ways of gameplay and new experiences that were a hit, such as Super Mario 64 (one of the most praised leaps from 2d to 3d). In this generation we learnt that games usually look better when the developer gets used to the architecture of the console, seeing graphical improvements whether in sequels or in new franchises by a developer that already released a game on that platform. For instance, we saw how games included a new (and praised) lighting technique called gourad shading, a vertex lighting technique that could improve a lot the look and atmosphere of games. Games also stopped using blocky assembled characters and we saw the first 3d models using vertex morphing/skinning techniques.
- 2nd generation:
- In this generation we had the PlayStation 2, the GameCube, the Dreamcast and the first Microsoft console, the XBox. These consoles expanded the possibilites of the last generation, by increasing the graphical capabilities, allowing a superior polygon count and resolution, and better textures. They were basically using the same "techniques" at a higher level. For instance, vertex/gourad shading is still the standard, but it looked better due to the higher polygon count. Some new techniques started to show up, such as shaders, but those consoles weren't powerful enough to make a massive use of them (although the Xbox had the edge on this, over its competitors).
- Current generation:
- This generation is kind of "split", since not all consoles followed the same line as it happened in the past (to increase the graphical capabilities). The Wii wanted to offer something different since the beginning, and that is the new motion controllers, that achieved a great success in a broad audience, mainly called as "casual gamers". The PS3 and the Xbox360 both have a better hardware that makes them capable of rendering beautifully shaded graphics. We don't always see a huge difference in polygon count (for instance, in some games the polygon count of a character is similar to that in last generation characters) but shaders truly make a difference in environments and characters, as well as in special and postprocessing effects. They can output larger resolutions, too, being the so-called HD consoles, although it seems that this generation hasn't achieved this goal as a basic standard for all games.
As a summary, in my words:
- PS/Sega Saturn/Nintendo 64: this generation was the early glory of 3d gaming.
- PS2/GameCube/XBox/Dreamcast: this generation was the generation of an increased polygon (also resolution and textures) detail, basically. The difference in consoles was determined by the marketing and the success of its predecessors rather than because of the hardware.
- PS3/XBox360/Wii: the "broken" generation. While I consider the PS3 and the XBox360 part of the "generation of shaders", the Wii is part of the "innovative controls generation". The PS3 and the XBox360 will also join this last category, eventually, but the Wii can't join the first one.
How will we call the next generation? The "true HD" generation? And the next one, the "photorealistic" generation?
Discuss.
PS: wall of text? 
"I think that I don't think."
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The FUTURE is the FUTURE. Now... B_E_L_I_E_V_E!
