I had no idea this was a Wii U thread
I expect every next gen platform, including the Wii U, to run Unreal Engine 4.
Remember people its about feature set, not raw power. Feature wise, people are kidding themselves if they think the Wii U is going to be this bare bones piece of metal and plastic moulded together.
I'm expecting the Wii U, on paper, to be between the PS3 and PS4 ("in between this gen and next) and I don't think its a bad place to be.
Both sides who think the Wii U will be an Xbox 360 in terms of power or the Next Xbox in terms of power are kidding themselves.
And I also expect to the untrained eye all games to look "on par" with current gen, next gen. HD takes everything to a certain even playing field.