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I understand it like this.


Today: WiiU PowerPC architecture. with ARM based co-processors etc.


Future: next system ?x86?-architecture with PowerPC co-processors. ***


That means WiiU's successor can handle GC/Wii/WiiU games because it actually does have a oced WiiU CPU that usually handles the OS and security etc. but in "WiiU" mode can play everything the WiiU/Wii/GC could.



**** or ARM based main processor with PowerPC co processors.   Keep in mind that ARM is likely used in the next handheld so  the main console also using arm will let the systems share the games like   iPhone and iPad do (Iwata wants something like that)