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He didn't say that the graphics wouldn't be better than Wii U graphics. Just that the difference in IQ isn't going to be huge. Think of the difference between PC Medium settings and High or Very High settings. There isn't going to be that much difference. Just having Wii U games in 720p as opposed to 1080p is going to need half the processing power to reproduce.

And good luck with expecting a game with thousands of online players, unless the game features bots you're going to struggle to find the players needed to play the game later on down the road, plus it'll be a nightmare to test properly.