These Wii-U rumors of it being less powerful should be thrown out the window. The thing is already confirmed by numerous actually named developers to have more ram than the 360/PS3. Then IBM said the processor was more powerful than the one the 360 has (not sure compared to the cell) The processor will already have more cache. The thing can handle 720P while streaming to another controller which consoles nowadays can't properly do. Then we go to the graphics card, which if all rumors check out the graphics inside it will be numerous times more powerful than the 360/PS3. Spec wise, I don't see any physically possible way that the 360/PS3 can be more powerful and capable graphically than the Wii U. It just doesn't make sense.

I doubt the WiiU will be less powerful than the PS360 - it wouldn't make sense at all!

Developers have told Games Industry International that development costs for next generation consoles such as the Wii U have risen sharply. The developer states that development costs for Wii U are much higher than Wii titles due to the increased resolution and polygon count. The developer also states that development time takes longer due to the advanced hardware, and creating innovative ideas for the Wii U’s unique tablet controller.

^And in other shocking news, we've been told that it is the Earth that gravitates around the Sun, and not the other way around!

/sarcasm

Isn't that something we all had taken it for granted? Dev. costs at least on par with PS360.

@ the above: :D

I don`t believe those two comments not even for a second, it just doesn`t make sense. Even the Wii was more powerful than Xbox. Wii U wouldn`t naturally be more powerful than Xbox 360 or PS3, specially now that better components and stuff have seen their prices come down since 2005? It just doesn`t make sense.
After that Zelda demo and that Garden demo it´s just impossible that Wii U is inferior. Those things didn`t even take the normal dev. cycle to get even better.

About the rise in development cost... well, it`s only normal. Personally i hope Wii U isn`t that much powerful. I don`t feel like paying 70/80 dollars/euro for games. It`s really cool to see better graphics and all, but that also means game prices go up again. No thank you!

IGN now joins the Wii U release date rumor!

http://gonintendo.com/?mode=viewstory&id=174869

This one supposely comes from a Gamestop regional manager. Says it's November 18th as well.

Well of course. The good news is that now the developers can split the cost of producing the game in 3 plataforms instead of 2, so is actually better for them. remember that porting a game only cost around 10-20% of the original cost.

So, Wii U ports will be a necessity this generation, specially if development for Xbox 720 and PS4 makes budgets rise again. Or, some small developers could end up betting on Wii U first as to not risk going bankrupt if they go Xbox 720 and PS4 right from the start.

Not necessarily true. When this gen started, many developers complained about high costs and some of us thought that they would choose to play safe and develop for the Wii. And after the initial closures our believes were reinforced... but no, they decided that the risk was worth it and forgot about the Wii.

And part of that is due to the publishers, not the developers.

Yeah, you are right.
But if budgets double - rumor has it - that business model may not work this time. What also happened last gen, was that some developers like Ubisoft made money with Wii and they certainly didn`t invest on Wii, but on the HD twins. I`m gonna risk and say Sega and Activision as good examples.
More, since the market grew it help sell more and make a profit or brake even.
What was the cost of last generation? 70 euro/dollar games, paid dlc, paid Xbox live and now PSN (in part).

If budgets double even for the first projects, something has got to change. Higher price on game? Higher LDC prices? A raise on paid subscriptions like Live and PSN?
With the menace of mobile gaming the market is sure to at least be a bit more divided with more money being spent on those platforms aswell, which could lead to less being spent on home consoles. Wether because our own budgets are of the same amount or because we need to have money for other platforms.
I just don`t see a way that the business model as we know it to keep on being the same.

That`s Wii U might end up being a safe haven for some developers, specally if they don`t have the funds to double their budgets or can`t spend an extra year to develop a game.
Wii U will seem, i believe, less risk than a completely new generation. Of course it would help a lot if Nintendo, like you said, position themselves as a viable alternative.