Wii U's main graphical disadvantage is the lack of a studio like Naughty Dog or Santa Monica

[DeadlyCatalyst]

Nintendo has plenty of studios that will push the envelope graphically. The only thing they won't or probably won't do is Movie games like Uncharted or The Last of Us, which are very good at showcasing graphical capabilities of a system. Take a look at X, it really does look fantastic.