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o_O.Q said:

if there is no processor then how is input and output handled? and the conversion of sound, video etc to radio waves?


There is (likely) an embedded digital controller that interfaces with the Blue-Tooth/Wifi components and converts the incoming data into visual/auditory/vibration output, and takes button-presses/touch-screen input and converts it to an outgoing signal to be interpreted by the Wii U system, but this would be a highly specialized processor and much simpler/less-expensive than the CPU that is currently in the Nintendo DS.

I haven't got a clue what controller Nintendo would be using, but almost a decade ago there were DSPs that could handle this that were being sold for a couple dollars a piece.