The heavy hitters are coming out next year. After that, I think the focus will shift onto upcoming consoles.

Are you talking about the Wii specifically?

Because I can't see anyone saying the HD consoles are on the downwards slope yet. So much amazing stuff to look forward to.

Also, saying the generation is alive and kicking because Zelda Wii, GT5, Final Fantasy 13, Halo Reach are still to come out is kinda false in my opinion. Im sure those titles will be great but no one can predict if established titles will have an impact this gen.
A game like Borderlands came out of nowhere and is a new IP and will probably get my game of the year vote...Dead Rising did it few years ago too. Both games are much better than an established heavy hitter like REsident Evil 5 this gen.

Ignoring some of the other silly stuff that the OP has been saying and just focusing on the initial question in the title, I can say, no we aren't in the twilight, but we are in the second half, both Sony and MS have pinned a great deal of hope in their motion controllers, but fact is neither is going to see much success, as a result, by 2012, we'll be seeing the PS4 and/or the 720 launching.

No. For any company. Sony is having its best sells, at least for the PS3.
The DS and Wii are in the top.
And for the 360, it has so many good games to come, this season and the next year.

This generation has not seen (ignoring handhelds, ports and spinoffs)

Zelda
2d mario platformer
GT
FF
DQ
Kingdom Hearts

Also Pikmin, F-zero, Starfox, Eternal darkness and a lot more awesome games

No, this gen has a good 2-3yrs in it yet with plenty of games too look forward too and Sony & MS's motion-control systems still to be released. Oh and anime is awesome.

I would expect to hear more about the new systems if we were in twilight

Let me disagree :)

We'll still see the following on PS3 this gen ( sorry I don't follow much the others consoles).

- FF XIII, FFXIII versus

- GT5

- Uncharted 3 ( 2011 holydays most likely)

- Assassin's creed 3 ( 2011 holydays most likely)

- The guardian ( team Ico game).

- GTA5 ( with the cost to develop they will definitly release 2 full GTA on the same engine this gen..), looks like end 2010, 2011 at earliest.

- Metal Gear solid rising

- most likely a new DeadSpace and Mirror Edge.

- I woudn't be surprised if we were to get a DMC5 in the next 2 years either.

- one more Call of Duty/MW every year :P

and many more titles we don't yet know about...

The main reason this gen isn't over any time soon is simple. There isn't a growing demand for better graphics/more cpu on the hd console ( there aren't a tonn of PC games selling like mad and making console games look like space invader by comparison...)

So the HD console makers don't have to move forward by fear of the PC catching up and stealing their customer base ( and with the way piracy goes on the PC, no developer is going to invest 50 million$ on a PC game to make console games look bad ( aside from Blizzard but their games are not designed for consoles anyway).

And finally there is no push by the development studios themselves to get better hardware ( EA and Activision are in no rush to have to redevelop their engines for a new gen...).

With the success microsoft has encountered this gen, it's not in its interest to jump start a new gen either. And Sony has invested too much to cut this short ( and the answer customers are giving to the slim show that not all is lost..)

Now if you ask if Nintendo is going by themselves to start the next gen, that could happen, but I'm not sure either Sony or Microsoft would follow...

Basically there is no financial motivation for either the HD console makers or the developers for a new gen to start and this is a business and finance is what rules.( on the other hand there probably would be a benefit for the developers if Nintendo was to release a Wii HD as releasing cross platform games would be a lot easier for them).

And if there is no benefits for the company and no huge demand from the customers, it ain't gonna happen.....

The last gen got awesome games as late as 2007-2008. And especially in 2006.

So, no. A lot of large franchises haven't had current gen iterations yet, and of course there are sequels to current gen franchises.

@Ail, quite the contrary, you say that Sony and MS have no financial motivation to release a new gen, but that's incorrect, Sony and MS have incurred massive losses this gen, losses they will never recoup, even now that slim is selling, its still losing money on hardware, on the other hand, Nintendo is making a profit, massive profits, of the three, they have the least reason to create a new system, even as sales have slowed, they still made the most profit, as for NATAL and the PS3 wand, they aren't going to be successes, they'll just split the base between those who own NATAL and the Wand and those who don't they don't have anything to sell it like Nintendo has with its addons.

Sony and MS will be looking to take advantage of new tech advancements to release new cheaper hardware at either a smaller loss or a profit, and will be looking to oneup their competitors by releasing early.