Whatever hardware they put out, it won't be as exciting as xbone or ps4
ALSO , Nintendo has enough cash on hand to survive the flop that is the WiiU. It's not like they broke the bank making that piece of crap.
They will plan on riding it out for a few years.... but when 3rd party completely abandons it, it will be interesting to see what they do.
All they need to do is just open an Indie shop and make it super easy for people to dev on it.
If they leapfrog PS4/XB1, it could actually be pretty exciting. It should be doable even on Nintendo's budget thinking.
Right now, or the next year or two obviously not (this rumor is beyond BS!), but in 4.5 years it will be the latter half of 2018. We'll be well into the 14nm process range, desktop PCs will probably have 32GB or even 64GB of ram by then, 8GB video cards, 1TB SSDs will be fairly pedestrian.
So a midrange console should be easy to make that's considerably more powerful than PS4/XB1 at that time.
We've been stuck on a very slow node for a loooooooong time with 28nm. So progress has only really happened with massive die sizes. 14nm will take that and put it on its head for sure. By late 2018 a $99 video card should have 4GB of GDDR6 and perform beyond 290X levels.
Unless something really dramatic happens to stop progress, that's what it's gonna be.
Look at this :
Summer 2008 : Nvidia releases GTX280 1GB for $649, Intel releases Q9650 3Ghz for $530. Common ram is DDR2, high end systems typically have 4GB. SSDs are extremely rare.
Summer 2012 : Nvidia has GTX680 2GB for $499, Intel releases 3770K 3.5Ghz/3.9Ghz for $300ish, Common ram is DDR3, high end systems typically have 8GB or more. SSDs are extremely common.
That's less than 4 years, for a good bit more than double the performance across the board. And that's with a pretty good stagnation in process tech. We're finally on the verge of some long-awaited breakthroughs that will have 20, 16, 14 all hitting in the next few years.
So without a doubt 1000%, a midrange console that could be sold for $299 in holiday 2018 could massively leapfrog the PS4/XB1. It might even be able to do 4K decently. However, the big question would remain, would Nintendo :
Want to do what is necessary to attract 3rd parties, and if so, would they be capable of doing so? The hardware is the easy part by then, the business side of things, not so easy.