tl;dr version: generation 7 was not as good as generation 6, and generation 8 will be worse than generation 7
Generation 7 was home to some great games and great technology, but unfortunately it fell short of the expectations laid down by Generation 6. When one looks back on the best modern classics of the last 13 years, most of them released on the PS2, Xbox, and Gamecube. Most of the tops sellers in Gen 7 have been good games that fall very squarely into pre-defined genres, and while they have in many ways taken the medium to new hights, it's also brought about some brand new lows-- games that sacrifice single player for the sake of a mediocre online mode, rampant DLC abuse, horrendous abuse of QTEs in place of true interactivity, and more focus on commercial tie ins with bad pop music and junk food that stains your teeth orange. And what's more, I expect a lot of people will be disappointed when they see next generation's games, and they are only marginally better than what current console games look like due to escalating development and manufacturing costs.
Here is what next gen is shaping up to be:
Microsoft is going to charge even more for Xbox Live, and they are moving away from exclusives to focus on early access to DLC. They are also abandoning the core gamer because they see Kinect as being a more profitable venture, while pushing the Xbox 360 as a set-top-box as opposed to a game machine.
Sony is in a dire financial situation, and this will likely end up hurting the PS4. From the sounds of it there will be no backwards compatibility with PS3 games, and if there is, expect it to be limited. Like Microsoft, they are pushing their consoles more and more towards being set top boxes, and while that is fine and dandy, it should not come at the cost of making your system be for gamers. I expect Sony's system to play things very "safe" this time, and that means it will be less innovative as the PS2 or PS3. They do not have an ace in the hole for the PS4 like they did with the PS2's DVD player or the PS3's Blu-Ray player.
Nintendo tried to cash in on the popularity of Wii by making lighting strike twice, but the problem is that Wii is not popular anymore, despite having sold millions. Releasing the Wii U is akin to Tay Zonday releasing more songs after Chocolate Rain: people loved Chocolate Rain because of the novelty-- some people passed it around because it was "ironic," while other people actually found it strangely catchy. However, no-one gave a crap about Tay Zonday's second song, because everyone had already moved on by then. The Wii U is basically the same thing as the Wii except several years later: no graphical imporvement over the current generation of systems, and it is using a gimmicky new controller to get you to play the same games as last time.
The 8th generation of consoles is not going to sweep in and take us back to the good old days, because the good old days are not coming back. This generation has dragged on for so long that it may have actually caused damage to the industry that we are only starting to understand. The console market has basically been segmented into the two CoD boxes plagued by DLC and online passes, and then there's the shiny white toy for little Jimmy. A lot of people who don't like those options are finding games in other places, like smart phones, tablets, and computers. This trend is growing, not shrinking, and that could mean that next gen could be the worst one since the 1980s crash.
Timstuff
The 2600 gen was bad? 
This be glass filled with half of water yes? Ok, so some would say both, one could claim one or the other, there are several factors, there are no factors lalala. Some say that the words are meaningless. Some say they don't care. All idiots. This is very simple, when you empty something out and when you fill it up is what the key to the door of this severe problem is. If you drink half the cub, it is half empty because you EMPTIED the WATER out the CUP. If you are filling the water, than it is half full because you are PUTTING the WATER in the CUP! Hopefully this will ease all confusion. -College pwofessor.
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