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Judging from what Nintendo has done in the past I'd say that the Next gen Nintnedo console will barely reach the horse power of the PS3/360 , in essence the Wii HD will just have enough horse power to render 720p only, all while keeping the machines cost at a good $200 - $250.

the PS4 and 720 or what ever they'll be called will go out for native 1080p graphics as it is a small jump from what the PS3/360 can do now, but the key thing is that the machines will be cheaper to manufacture which means they won't lose money on them at all from day one, but not to say they'll make money, more a cost to cost thing till they're able to decrease manufacturing cost and such.