Nintendo president Satoru Iwata said that the difference in graphics between the Wii U and its competitor's upcoming consoles will be less than that between the Wii and the Xbox 360 and PS3.
During a Q&A session with investors , Iwata explained, "Other companies might launch a next-generation console with more power, but we don't necessarily think that the difference between the Wii U and such console will be as drastic as what you felt it was between the Wii and the other consoles because there will be fewer and fewer differentiators in graphics."
"Naturally some consumers are very sensitive about such a small difference in graphics so that we will make efforts to make the most of the performance of the Wii U to keep up with technological innovations and not to make the system out-of-date soon."
He admitted that some corners would have to be cut here because the Wii U is essentially two pieces of hardware in one between the GamePad and the console, so Nintendo needs to show restraint here to keep costs down for consumers.
"We are including both a video game console and a handheld device, if we were not careful about how luxurious both of them were, we could end up having to offer the price of the two hardware systems combined, which would not be an acceptable price for the consumers. We had to design it by balancing the performance and the costs."
http://www.eurogamer.net/articles/2012-07-03-iwata-the-wii-us-graphics-wont-fall-short-of-its-next-gen-competitors-like-the-wii
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