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I don't think Nintendo honestly has much interest in graphics beyond the Wii U to be honest.

All you get really by making the jump to PS4 is prettier graphics, but that causes game development to cost more, which is a no-no at Nintendo and their more cartoony style of graphics looks more than fine on the Wii U.

So if handheld chips are closing the gap to Wii U level performance ... then really, what is left on the console side for Nintendo?

Their consoles don't sell, and they have no play on the console market unless they make a new console comparable to the the Playstation 5 (not PS4 ... by the time a "Nintendo PS4" comes out, no one will care but Nintendo fans, which is basically just another Wii U-2 scenario for them).