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Soundwave said:

It's too late to create a PS4-level machine. 

They would have to go to somewhere in the range of 3 TFLOPS + 12GB RAM minimum (*minimum*) at this stage, and even that probably wouldn't be enough. 

The PS2 routed the XBox even though the XBox was a good deal more powerful and that was only an 18 month headstart. 

Beyond that Nintendo has the brand problem of being associated with rainbows and bright green hills, the guy who wants to play Call of Duty or Grand Theft Auto likely isn't sitting around dying for a Nintendo version of the Playstation. 

No. Devs only demanded 8GB of ram and Nintendo could opt to range themselves within a mid range PC in power. The PS4 and XBox One were developed to be around a PC that could handle high level PC settings rather than Ultra. Nintendo could sell a $350 console at medium level graphics on a PC.