Well, thats one way to announce it.

E3 will be really, really interesting this Year.

Looks like this next gen will be more or less a repeat of the current gen, except the Wii U won't sell as much as the Wii.

Both Rare and Nintendo had problems. Mostly because they wanted more money and Nintendo didn't gave it to them, also most of the core team inside left the company because the founders asked waaay too much out of them, some developers almost described Rare as a "living hell" (not exactly those words but you get the idea) When MS bought them Rare wasn't the same, and after that they eventually died (even the founders left Rare behind).

Retro has lost more talent than Rare did in the early 2000s.

There's basically no one at Retro left from the Metroid Prime 1 days.

Turn over is a part of the industry in the West.

Nintendo simply doesn't want anything to do with Western devs. There's only two or three that they really work with now, and that's to have them work on projects the Japanese side is too busy to work on (Luigi's Mansion 2, helping out with Mario Kart 7, Donkey Kong, Pilotwings, etc.). 

Talk about getting kicked when your down. Nintendo can make their own blockbuster, AAA, million dollar sellers. They've proven that time and again, but when your console is currently tanking hard and struggling to find a audience, these kind of news do not help at all.

Ah I see :p I didn't know most of the dev team left when they were with Nintendo. I knew they worked the team pretty darn hard though..

LOL at the last sentence. 

Depends on how we define "handle"

What is the target platform for UE4? What kind of hardware are gamers going to need to run UE4 based games?

Unreal Engine 4’s next-generation renderer targets DirectX 11 GPU’s and really starts to become interesting on hardware with 1+ TFLOPS of graphics performance, where it delivers some truly unprecedented capabilities. However, UE4 also includes a mainstream renderer targeting mass-market devices with a feature set that is appropriate there.

WiiU has at best around 350GFLOPS, so only 1/3 of what's needed to run UE4 with those "truly unprecented capabilities". So, all games built in UE4 would need to run on it through that "mainstream" renderer - which I'm guessing is more or less UE3. WiiU does support UE3, as he said, so...

Unfortunately this is a sentiment echoed in the development community, that the Wii U is not "next gen". This generation has lasted entirely too long, people are looking to move on, and the Wii U did not deliver capabilities anything close to that expectation. They couldn't even be bothered to put a simple ethernet port on the thing. It is going to be eclipsed by Sony and Microsoft's offerings in the eyes of third parties. The amount of interest in Wii U at GDC was abysmal. It's undeniable that AAA games are moving forward along with hardware capabilities and the Wii U will be left behind in the next generation.

The fact is it's going to end up as another Mario platform, although that doesn't mean it will be a failure. It's just going to be a platform for the Nintendo faithful, those who are satisfied playing only Nintendo games. Unfortunately a lot of people want more than that, and if they can only buy one console, the Wii U will not be their choice. There's no trendy movement gimmick to pull people in this time either, the gamepad is not even close. Those of us game enthusiasts who buy multiple consoles are in the minority.

As unprofessional as the guy is being, this is hopefully the wake up call that Nintendo listen to.

When everyone laughs at you in the west clearly there are problems.

After all the money they made from Wii.

There are two solutions:
1. Realise 3rd party will never work for Nintendo, so create more studios to work for you to create new IP.
2. Moneyhat studios to do exclusive games.

In the long term talk to the heavy weights and see what hardware they need next gen after this one. Not sure if it would do any good though as gamecube and n64 were pretty powerful at the time of their releases.