I expect it'll have better hardware than the PS3/360. It just needs to do more work because it'll be split between two devices don't forget, and a lot of the money will be put into the controller's screen no doubt. It needs to be able to stream video data to and from the controller without lag too, which is something the PS3 can't do (remote play is terrible). Nintendo's thought process was probably "Let's get the graphics up to current standards and then put the real work into functionality".