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I'd be happy with this if true. Obviously Nintendo's priorities are not to make a console that costs $500 to mass produce and sucks 180-200W along with being the size of a truck.

But this would be a good deal more powerful than a 360/PS3 and it would have a lot more modern GPU feature set (it's a 2011 GPU).

For a lot of Japanese devs this would probably be all the power they want and for some Western studios too. Not everyone is going to be able to afford expensive PS4/720 development IMO.

If you got a machine that can produce graphics better than The Last of Us, to me that's not the worst thing in the world. Especially in the hands of a developer like EAD Tokyo or Retro, that's going to be a monstrous upgrade from the Wii.