Doesnt matter what he says. The way he says it shows how the successor will be.
No WII like improvment. We will get a beast again with significant improvments in Hardware no 2 year old gpu. It means we will probably see a gen like improvment like we are used to. HD graphics start to look in my eyes downright ugly and hard to watch. we definetly need a next gen i dont consider wii u next gen on a graphics level.
Avatar like graphics are rediculous. but avatar with worse animation less detailed textures worse lighting some flaws here and there maybe.