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Soundwave said:

It doesn't have to match the Wii U in "raw power", it just has to be able to approximate it so Nintendo can port some of their Wii U catalog/engines to it IMO (which you will have to pay for again, don't expect freebies here).

The first thing they can do is slash the resolution of Wii U-style games to 480p or 540p, that reduces the processing power required.

I think perhaps an ARM CPU core + perhaps an AMD GPU, if they can make one power efficient enough, might be the way Nintendo goes.

Perhaps the next Nintendo handheld will also be larger than people think ... it could be more along the lines of the size of an iPad mini IMO, which provides more room for heat dissipation from a hot running chip. 

Yes, a NeoGAF poster who seems to know a lot of the goings on at Nintendo thinks they will definitely go with an ARM CPU.
On that note, I actually think if they go with the iOS model that if it is BC with Wii U any Wii U games you own will be activated on the new system as well.