Neither/Both ...
If you look at the ultra-small PC's that are on the market today (eeeBox), and imagine how these are going to advance over the next 4 years, it should be very clear that some very powerful energy efficient hardware will be very affordable at the end of 2012 when Nintendo is launching their next generation system. Now, I'm reluctant to make any predictions about how powerful their next system will be, but it should easily be able to produce some very nice graphics at 720p.







