Nintendo will be behind the others in graphics, obviously, as they're launching at least a year in advance. But I think they'll be up-to-date enough to have games multi-developed with the others.
There's two extreme scenarios:
One is that the Wii U will not take off like Nintendo would like and, like the Dreamcast, be overshadowed in a couple of years by the more powerful X1080 and PS4, which could copy the screen controller if it's popular.
The other is that it sells through the roof, like the PS2, with the competition having no hope of catching up and not being so far ahead in power that games can't be multi-developed.
Then there's an "anywhere in the middle" scenario where everyone kinda wins again. My guess is that Nintendo will be a huge success due to their great talent and ability to utilize new hooks successfully, leaving a spot open for one of the other two to be the other "it" console. In other words they'll manage to keep up nicely and, once again, pit Sony and Microsoft directly against each other.
