Seventh Generation (22 nov 2005 – 22 mai 2013)

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The seventh generation of video game consoles began on November 22, 2005, with the release of Microsoft's Xbox 360 home console. This was soon followed by the release of Sony Computer Entertainment's PlayStation 3 and Nintendo's Wii on November 19, 2006, the following year. Each new console introduced new technologies. The Xbox 360 offered games rendered natively at high-definition video (HD) resolutions, the PlayStation 3 offered HD movie playback via a built-in 3D Blu-ray Disc player, and the Wii focused on integrating controllers with movement sensors as well as joysticks. Some Wii controllers could be moved about to control in-game actions, which enabled players to simulate real-world actions through movement during gameplay. By this generation, video game consoles had become an important part of the global IT infrastructure; it is estimated that video game consoles represented 25% of the world's general-purpose computational power in 2007.

Joining Nintendo in releasing motion devices and software, Sony Computer Entertainment released the PlayStation Move in September 2010, which featured motion-sensing gaming similar to that of the Wii. In November Microsoft released Kinect. Kinect did not use controllers, instead making the players act as the "controllers". Having sold eight million units in its first 60 days on the market, Kinect claimed the Guinness World Record of being the "fastest selling consumer electronics device".

Among handheld consoles, the seventh generation began somewhat earlier than the home consoles. November 2004 saw the introduction of the Nintendo DS (NDS), and the PlayStation Portable (PSP), came out in December. The NDS features a touch screen and built-in microphone, and supports wireless standards. The PSP became the first handheld video game console to use an optical disc format as its primary storage media. Sony also gave the PSP multimedia capability; connectivity with the PlayStation 3, PlayStation 2, other PSPs; as well as Internet connectivity. Despite high sales numbers for both consoles, PSP sales have consistently lagged behind those of the NDS.

A crowdfunded console, the Ouya, received $8.5 million in preorders before launching in 2013. Post-launch sales were poor, and the device was a commercial failure. Additionally, microconsoles like Nvidia Shield Console, Amazon Fire TV, MOJO, Razer Switchblade, GamePop, GameStick, and more powerful PC-based Steam Machine consoles have attempted to compete in the video game console market; however they are seldom classified as "seventh generation" consoles.

The seventh generation slowly began to wind down when Nintendo began cutting back on Wii production in the early 2010s. In 2014, Sony announced they were discontinuing the production of the PSP worldwide. Microsoft announced in 2016, that they would discontinue the Xbox 360. The following year, Sony announced that it would soon discontinue the PlayStation 3. Around that time, the remaining Wii consoles were discontinued, ending the generation as all hardware was discontinued. In late 2019, the latest game for the Wii, Just Dance 2020, was released. The eighth generation had already begun in early 2011, with the release of the Nintendo 3DS.

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