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captain carot said:
Two ways for compatiblity:
Hardware: Have Wii 3 an actual SoC with Wii U CPU and GPU.

Software: Emulate PPC and GPU. If the triple core PPC in the Wii U is as standard as most think it actually isn't that difficult to emulate. It might need much CPU-power to emulate it with enough speed though.
The really challenging part would be the GPU. WiiU has likely a design based on Redwood or even RV730. AMD has already made a completely new GPU design since then and that basically means there might already be compatiblity issues.

As for a Wii U on a chip, it would cost money but could possibly be done pretty cheap with a future manufacturing process like 14nm.
Softwareemulation would cost some money as well in development. And need fast enough hardware.

 

Software emulation: that would need a really fast CPU to deliver the performance. Absolute the opposite of current Nintendos direction.

Hardware: a die shrink would help them to cut production costs of the Wii U too. But I guess it might cost them much more to get IBM doing that... 

Overall the Wii U is a very balanced console with state-of-the-art manufacturing. 

 

I bet Nintendo is more worried about the next generations of gamers than about the next generations of consoles...