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Nintendo needs both. It needs to be relatively powerful to get 3rd party support (because they can't do this alone as the Wii U has pointed out) and to graphically convince a lot of gamers that the NX is a step above the PS4/Xbox1. It also needs a great 1st year lineup to convince people that it's worth buying even though it's a mid-gen console release.  Lacking either is just going to doom the NX.

Nintendo's going to have to work their butts off to convince people to buy the NX and I'm hoping they'll do the work to make that happen.