I think it's true.
They released some detailed specs around last E3 too.
"Based on Power7" is a term that can be wildly stretched in a lot of ways.
If it was a legit Power7, it would blow the PS3/360 out of the water (and probably melt that case), but devs have already come out and said the CPU isn't all that great. The GPU is supposedly decent.
Honestly, buy Nintendo systems for Nintendo's games. Any decent third party stuff is a bonus and you'll be happy. This was never going to compete with PS4/720 on power, Nintendo got out of that race when the Wii brand as a whole was introduced.
IMO Nintendo designed something that got to just above XBox 360 in horsepower and that could fit into a very compact case. That's their priority. Along with something that could be sold for cheap. Their priority is not people who need to DX11 effects/Unreal 4 engine graphics. What Nintendo IP even needs that kind of power? Nintendo is not greenlighting a 100 million dollar Metroid game fellas. For third parties ... well that's going to be their issue if they want to port games or not.
