I know this is in vain, but I beg people to actually read the article before commenting- it actually is very good IMO and provides a good (though sobering) analysis of Wii U's future.
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We've relied on industry sources to assess the Wii U's ability to play the probably cutting-edge games of the year 2014. These insiders themselves cannot assess the Wii U's power with 100% accuracy because the might of a console is the product of multiple factors. Judged by its RAM, the Wii U could be viewed as up to four times as powerful as the Xbox 360, boasting as much as 2GB of RAM to the 360's 512. But one insider who has had access to the machine says that the console's impressive AMD Radeon-based graphics chip is off-set by a CPU that runs at low speeds, can do out-of-order processing but has fewer threads than the 360. The insider says the Wii U has the power to run Xbox 360 and PlayStation 3 ports with little difficulty. But they predict trouble when major third-party companies start producing games for the next Xbox and PlayStation, which will be about 6-8 times more powerful than the current 360 and PS3 according to several Kotaku sources who are aware of Sony and Microsft's plans for those machines.
In the short-term, the Wii U will be able to keep up with the most powerful consoles on the market, the 360 and PS3, and will likely even surpass them through much of late 2012 and early 2013.
One source encouraged us to think of Unreal Engine 3 as requiring the performance and capabilities of Direct X 9 but advised that demos running UE3 with enhanced specs, a la Samaritan and 1313, require DX9 performance but DX11 shader capabilities. They consider the Wii U close to that DX9-performance/DX11-capabilities combo but possibly hampered by its CPU, which they believe Nintendo is requiring to run at lower speeds in order to keep its chips from getting too hot and therefore allowing the machine to run as quietly as the Wii-and with relatively low power consumption.
Still, some UE4 games are expected as soon as next year, and UE4 is unlikely to run easily or immediately on Wii U. Our Direct-X-comparing insider considers UE4 as requiring Direct X 11 performance and capabilities, a standard beyond Nintendo's new device.
Fils-Aime expects major game-makers to create their games of late 2012 and beyond with the potential to accommodate the Wii U. Of the Unreal Engine 4, he said, "they're not finished yet. There's still work they need to do to finish that engine." Ultimately it is conceivable that Epic will adapt its UE4 so that it can run on the Wii U, as its Unreal Engine 3 has been proven capable of running on cell phones and in web browsers. But Fils-Aime's hope leaves ample room for doubt that the Wii U will be running, say, some future Unreal Engine 4 game in the Mass Effect series. It's not even clear whether it can even run the likes of UE3's Star Wars 1313, though I've repeatedly asked Nintendo for answers on whether the UE3 can handled such a modified UE3 game, to say nothing of UE4 titles. Should they nail that down, I'll update this story.
Certainly, the company's own Marios and Zeldas will look stunning as they enter the HD era and begin to exhibit, potentially, the kind of graphical detail seen in such PS3 and Xbox 360 visual masterpieces as Killzone 3 and Max Payne 3, albeit in the more cartoony style for which Nintendo is known. Nintendo's own games, in other words, will probably look great on Wii U.
"After the next generation of machines comes out, Wii U will be a performance orphan," one industry insider who is familiar with the specs of the new Nintendo console, told Kotaku. "It will be closer in performance to the next iPad than the next-gen machines. "
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