The next console will be less powerful than the PS4 because
1.) It will be using the same components as the next handheld, just souped up. So it'll be able to probably run games at 1080p, but they'll still look similar to Wii U games (much like the GameCube > Wii situation).
2.) I don't think Nintendo wants graphics any better than the Wii U. The games are already expensive enough to make that you can bankrupt a studio with even PS3/360 level visuals. Nintendo games look great on the Wii U as is, I think they're quite content with that level of visuals and don't have much interest in making a COD or Destiny or Gran Turismo or NBA 2K killer where graphics and realism matter. For Mario Kart? Something even just double the Wii U with more RAM would give you a gorgeous looking game.
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