If this turns out to be true, it wouldn't surprise me in the least. I know some Nintendo fans are hoping this will blow the PS3 out of the water (3x or 4x more powerful), but I don't see it happening. Not unless Nintendo does want that hefty price tag. It'll probably be more like 1.5x more powerful when all things are considered and the graphics will be have better shadowing and anti-aliasing, while having the texture quality and poly count of PS3's better looking games.
This would actually make more sense if Nintendo wants to keep the price tag ~$299. Though, I don't think it's going to help them with 3rd party support when most developers leave for the much more powerful PS4/NeXbox, which will probably be releasing 1 year from the Wii U's launch.
