This part of the source:
"The RAM is also made by IBM and is embedded with the processor on the same die/silicon, which results in more bandwidth."
is of course complete nonsense. The ram (probably rebranded by IBM, they don't make drams) is on the same chip carrier, not on the same die (like PS3's graphics memory). Those big I7 processors have 6M of L3 cache on the die - just imagine how insanely big (and therefore expensive) a processor with 768M would be.
Apparently they tried 1G memory too, but found 768M sufficient enough. I guess these specs would be good enough to run all existing console games in 1080p resolution.

Quad Core, 3 GHz PowerPC-based 45nm CPU = We know that it's Power 7 bassed and if the reports of the Pre E3 hardware had lower clocks than the current dev kitts the final CPU is likely arround 2x faster than the 360 CPU depending on cache and hyper-threading (allows each core to do more things at once, Power 7 allows each core to perform 4 operations per clock cycle vs the 360's 2) This would be very solid for a console

768 MB of DRAM “embedded” with the CPU, and shared between CPU and GPU = This just sounds stupid it is a 50% increase over the 360 but conflicts with the lots of RAM reports that we have been hearing, I would expect final hardware to be at least 1GB. That much memory embedded on the CPU die would be crazy expensive. Also on a console GPU memory bandwidth is more important than CPU on the 360 for example RAM is connected to the GPU directly and the CPU accesses RAM through that so embedding shared RAM with the CPU would be stupid unless they are combining the GPU and CPU but that would be a crazy big chip with that much RAM and would probably be to hot for a small console.

Unknown, 40nm ATI-based GPU = Tells us nothing

All in all even if thses specs were true in March this year there is no chance in hell that these are close to final specs and some parts just sound crazy but that might just be due to it being 3rd hand translated report that has got some details mixed up. You can probably safely ignore these specs.

sweet :D thank u for the detailed explanation

768MB ram is just unbelievable, there's being economic and then there's not even trying. My craptop has 4 GB DDR2 RAM, what the heck. Perhaps the architecture of it will be significantly better than the current consoles, but still I am sceptical about this. And I don't have much knowledge about computer language either, so perhaps they are doing something right.

I mean they said they were going for the hardcore guys, not just nintendo fans. We all know Nintendo fans will buy it regardless of what specs the console has (what I did with Wii), but when the 720/PS4 comes out, it could be very hard for them pull over the hardcore crowd. One more year though, still have time to improve.

you know, i've seen so many form goers say this and yet i've never seen nintendo make that claim.  in an interview i say reggie state that the wiiU can export in 1080p but never that ALL games will.  i mean, hell, the ps3 can do 1080p ... on like 1 or 2 games.  :P

While the Wii U will be more powerful than the 360 on paper, I would imagine most games are going to look equal to their 360/PS3 counterparts. This is for 2 reasons. One, most developers aren't going to put in the extra time, effort, and money to optimize games for its HW. Instead they will opt for an almost carbon copy of the other versions, while using the tablet mostly for menu navigation. This is already the normal practice for most muli-plat games, anyway. And 2nd, part of the consoles processing power is going to go to streaming video to the games tablet controller.

I'm personally taking this with a grain of salt.  We won't know for sure what the final specs for the system will be like until Nintendo themselves confirm it, and as of now, they have yet to do so.  So this is hardly worth freaking out over.

Nintendo don't do that anymore, the Wii and 3DS specs have never been confirmed by Nintendo. 

That was a pretty damn good one right there.  You deserve a treat!

I think that with this kind of hardware Nintendo can sell the console + 1 Wii pad + a bundled game for only U$ 250.