When Merrick is talking next gen power is he comparing Revolution to Xbox 360 or PS3? 
As for the power, it probably doesn't matter a whole deal. The gamecube seems to be more powerful than the PS2 (Sans the smaller disc size) and it isn't like that was a difference maker for Nintendo. For the Revolution to get fast out of the gates Nintendo needs to show the whole world what the system is made of in every phase. Luigi's Mansion 2 is not going to cut it. Especially when the system doesn't have the advantage of a head start.
I wonder if the Revolution will be out before the PS3. It could be possible that Revolution is out in some territories first while the PS3 is out in other territories.
As for the power, it probably doesn't matter a whole deal. The gamecube seems to be more powerful than the PS2 (Sans the smaller disc size) and it isn't like that was a difference maker for Nintendo. For the Revolution to get fast out of the gates Nintendo needs to show the whole world what the system is made of in every phase. Luigi's Mansion 2 is not going to cut it. Especially when the system doesn't have the advantage of a head start.
I wonder if the Revolution will be out before the PS3. It could be possible that Revolution is out in some territories first while the PS3 is out in other territories.