Unlike any generation prior, this generation seems to have two very distinct phases, the second of which is starting now.
According to Wikipedia, we are in the seventh generation of the console cycle. As we all know, this generation is home of Nintendo's Wii, Sony's PlayStation 3, and Microsoft's Xbox 360. Additionally, though not a part of the seventh home console generation, this is still currently the era of the PlayStation Portable and the Nintendo DS.
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