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Whatever the Nintendo console is, I think it won't be weak compared to the X1 and PS4, but will be weak compared to the Neo and Scorpio. I don't think Nintendo saw this move coming from Sony or MS and were hoping when they began to R&D to create something that was close to the current gen consoles.

Even if it has VR, it doesn't mean it will be a powerful console. There is cheap VR out there like the moulds you slot your phone into. Nintendo could very much create a streaming up (with all the streaming rumours) and have you plug your phone into a mould to watch the game in VR or play it.

Either way it will be interesting if they decide to launch between the Neo and Scorpio.