It really isn't a high water mark to exceed, but when the source throws out phrases like i7 Skylake (i7 being Intel's high end consumer CPU brand) and near top tier GPU, it implies the NX is going to be on par with what is today anywhere from a $1k to $1500 enthusiast PC build. 

Most with a firm grasp of the industry would throw down money betting that Nintendo is not going to price the NX over $399, making the above claims hard to believe. 

well home console = stronger than PS4

the bit you take away to pla stronger than X!

ok one can dream lol.

The source WAS NOT saying it uses the latest Intel processor. The source was just pointing out how powerful the dev kit is, so much that the demo @ 60fps would be impossible to do on whatever Intel has right now (which is Skylake). Not that the kit uses skylake, Any Intel by itself isn't that good a gaming and PS4 and XB1 aren't powerful anymore relative to what is out now. So, it should be no surprise to anyone that NX will be able to hold its own.

"Based on the development kit, the sheer processing capabilities of the hardware (which still hasn't been finalized) are going to be "incredibly powerful" and quite possibly faster than whatever Sony and Microsoft have in store. Specifically, one software demo included with the kit crunches so many polygons that it's currently impossible to run at 60fps using a current-generation Intel (we're assuming a Core i7 Skylake) CPU and a nearly top-of-the-line graphics card (no specifics provided, but they probably used a single graphics card)."

The "(we're assuming a Core i7 Skylake) CPU and a nearly top-of-the-line graphics card (no specifics provided, but they probably used a single graphics card)"-part doesn't come from the source, it comes from an assumption from whoever is relaying the words. I'm pretty sure people do not speak using parentheses. This is how it should come out of the sources mouth:

"Based on the development kit, the sheer processing capabilities of the hardware are going to be "incredibly powerful" and quite possibly faster than whatever Sony and Microsoft have in store. Specifically, one software demo included with the kit crunches so many polygons that it's currently impossible to run at 60fps using a current-generation Intel".

The only GAF insider with knowledge on the hardware hasn't said any such thing. People need to disentangle an insider (an actual one with full knowledge on the machine) and someone who is talking with internal sources on vague terms for confidentiality reasons.

None of them knew how to use it either, I just focused on Nintendo because it seems highly odd to want to sport a brand new high grade Intel CPU.

I highly doubt the other two will ever make use of an i7 and HT at any point in the future either.

I noticed that now aswell, thanks for pointing it out

There's no arguing that the NX hardware should be using specs that are about 3-4 years ahead of the PS4 dating back to 2012-13 hardware, but the reality is that it will be using a custom SoC like the PS4 and XBO that isn't the same as a standard gaming PC set up designed for greater functionality and performance using a typical Intel i7 quad core/octo thread such as the i7 6700 and a Nvidia GTX980 video card.

We're looking at a sub $400 box here. Do the math in terms of what type of specs that buys today.

It buys a lot more than the PS4 specs, but nothing remotely close to the gaming PC specs.

So essentially this demo would be SCE's infamous Killzone 2 performance target demo.

Plus the idea that anyone, Nintendo of all companies, would try to sell a Blue and Green (Intel and Nvidia) gaming box at a profit but mass consumer priced seems so ludicrous, that there are far too many nails in this coffin.

Easy money says that the NX will be using an AMD SoC

ShockingAlberto on NeoGaf who's supposedly a very reliable insider basically laughed at the idea of NX being better than the PS4. Take that for what it's worth:

http://www.neogaf.com/forum/showpost.php?p=181944320&postcount=1799