A user at NeoGAF has shared that they’ve been told the Wii U is the “best of the current generation by a country mile but not significantly beyond that”. Meaning, it’s beyond the PS3 and Xbox 360 by a noticeable margin, but will fall-short of being seen as a genuine next-generation platform. But, that said:
…there will probably be nothing hardware-wise stopping downgraded ports from what people think the new XBox will offer. We’re talking, like, Witcher 2 on high settings vs. Witcher 2 on low settings. Same game, same basic idea, different graphics.
And while we’ve heard all sorts of rumours and speculation being flung back-and-forth about the specs of the Wii U’s hardware, I think this is where the pendulum will fall. It won’t be seen as super powerful when the Xbox 720 and PS4 come along, but it’ll be appreciated for its improvements over the current generation for the time being. It’s that satisfying middle-ground that I think most rumours have been pointing toward.