2-3%? I agree that 300% is FAR too high, but you can easily OC a CPU by 15-20% without running into any cooling or stability issues. 1,6GHz would sound reasonable.

YOU can OC a CPU that amount. The reason you can is because you're willing to take a couple of percent risk that the heatsink will fail, or that the CPU life will be shortened from say ten to five years. You're exploiting the difference between a manufacturer's super safe rating over the entire batch, and the likelihood your can be run faster with no issue.

Nintendo still has an excellent customer service reputation to uphold. If a clockspeed increase caused 1% failure rate increase that would not be acceptable. As I said, they'd have to have data beforehand that it could run faster guaranteed no problems. Like it was known the PSP CPU could be increased to 333 long before Sony did it.

CPU's are usually factory overclocked or underclocked by their very nature due to the binning process.

The Wii U's CPU is also tiny from a transister count point of view, this means it's going to get high yields, they are probably throwing CPU's into the WiiU that can actually hit a high frequency at a lower voltage just because they don't have any other SKU's that need filling.

As for the shortening of a CPU's life, we all know that PowerPC can clock well and Nintendo was very conservative with it's clockspeeds, in return the voltage was probably higher than it needs to be in order to be able to use even the worst performing CPU's (From a voltage perspective) that they might have gotten out of a batch, now what happens if they didn't get the expected poor performing chips (Aka. The ones going into the consoles) after the first lot of batches from the fabs? Suddenly they have clockspeed to take advantage of.
if Nintendo can clock it high without driving up the TDP and thus voltages to insane levels, issues such as electromigration will be a non-issue and we must assume that's the case.

As for heatsinks "failing" it won't happen. A Heatsink is designed to dissipate a certain amount of TDP, Nintendo isn't going to push past that barrier it's not a variable number, heatsinks are designed to increase the amount of surface area available to air flow in order to cool the surface of a processor down.

And lastly, with the wattage, it's ALWAYS a good idea to release a Power Supply that is capable of more than you need, why? Capacitor aging, over time the efficiency and thus maximum wattage a Power Supply can sustain, decreases, greatly.

In my opinion it is possible as Nintendo would have the best idea on what it's chips are all capable of after leaving the fabs, they can clock it higher and use less power if they lower voltages if they get excellent yields, chances of 300% increase though is probably highly unlikely.

To be fair, some cheap power supplies in the late 90s did just as he described, said it was  250W but that was peak, constant was around the 200 mark lol.

As I satate before, it would only be genius if the devs were in the loop. Otherwise BIG waste of time pissing them all off. 

i.e. it wouldn't been hard for Nintendo to say to the devs, we HAVE X amount of space left to boost the CPU and GPU. ATM it is clocked lower cause we need to get the OS more efficeint etc... and these specs will be unlocked with the summer update.

Consideirng the outburst by some developers, it is clear that was not the case. So if this rumor is true the move would be less than genius as devs are already pissed off. 

LOL this is fantastic.

We have air conditioning here instead. so if it is 40 outside, in house is a nice 18, but costs and arm and leg to keep the house cool.

That's true, it's still happening now on OEM PCs as well :)

...bit OT...so I'll leave it there :)

Doubles performance.

Possible? Yes
Real? Don't know

To be fair, a lot of post update load times have been cut in half and that milisecond delay for the TV vs the gamepad no longer happens, plus I think my framerate is much more stable in Arkham City now.