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Mr Khan said:
How would he have such intimate access to the hardware, and yet merely "think" that they weren't going to compete graphically?

One also wonders exactly what that means.

 

With the rumours we've had about the Wii U's hardware the Wii U sounds like the Wii U could be used to produce modest improvements in HD console graphics at 1080p@60fps or significant improvements in HD console graphics at 720p@30fps. I could be wrong but I suspect he is saying that Nintendo won't be pressuring developers to push high end graphics, and Nintendo won't be trying to compete on graphics.