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I think Nintendo will be balanced this gen, what I mean by that is that the wii u will surely have better graphics than the ps3 and xbox 360, but I don't think it will be a huge difference, mostly because Nintendo usually keeps its prices low (excluding 3DS), they don't want to lose all casual gamers they gained for the wii (although most of them are now playing with there ipads rather than the wii) but they also want to recover the "hardcore" gamers they lost this gen. 

There's also the fact that both Sony and Microsoft want some of the casual gamers market (a.k.a ps move and kinect) so I personally think that both companies will also play it balanced this gen, not making a huge leap in graphics and focus more on the casual market (especially Microsoft)



Nintendo and PC gamer