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Soundwave said:

I think they are quite happy with Wii U level graphics, that's probably taxing their dev teams and pushing dev budgets to about the top tier that Nintendo feels comfortable with. The next handheld will be capable of Wii U level graphics just at a 540p resolution IMO, well the home TV mini-box will give you the same graphics at 1080p. And they'll be able to sell it for very, very cheap. 

So I think we're looking at a graphics jump in effect similar to the GameCube to Wii jump (not a big one). Iwata's comments about "absorbing the Wii U" I think hints at this ... they won't re-use the same chipset, but they will make a new chipset that allows for Wii U engines to have a streamlined process is being ported over and can handle those engines even in a portable (sub 5 watt power consumption) setting. 


Vith their next home console they will targeting 1080p/60fps (vith AA :)), like they targeting 720p/60fps vith Wii U, that is much biger jump than GameCube/Wii, Wii was just about tvice powerful than GameCube.