Which is why Nintendo went with what they did in the Wii U.
The Wii explosion of popularity showed them that Average Joe Consumer could care less about graphics/RAM/clock speed. As a result, we got this thing. I like it, don't get me wrong, but, to me, it's a system that I'll have in addition to one of the other two new ones.
To be fair, I think it's a little more accurate to say that Nintendo seems to feel they don't have to leave their traditional comfort zone to make a successful video game console.
The problem's always been that gamers see Nintendo has having stopped competing. It's more that the costs of dedicated, enthusiast-oriented game devices kept going up and finally left Nintendo's price range. The bleeding edge left them behind.
There were actually too conservative with the Wii, IMO. I think their reservations were actually justified, but as they didn't know if the Wii experiment would work, they lowballed it a tad much. Had the Wii been a tad more powerful and supported basic HD output it might have smoothed over the disconnect between Nintendo and where 'hardcore' gaming was going a bit more.
For all that it is now being said "Wii U is Wii all over again", Wii U, even at launch with the stuff we've got to work with so far, is not as out of step as the Wii was. It outputs visuals at current standards for displays, it appears capable of producing content that the mainstream and even genuinely average core games (as opposed to the elite, the enthusiasts, and the leading edge) seems happy with.
The weird part is that finding this out about the CPU actually has me more intrigued than panicked. It seems clear that something about the console's design concept is working due to the performance it's outputting with day zero software. I'm actually more confident about its capabilities as far as native games go, and its ability to make use of the gamepad while running impressive games. No, I didn't just buy one for Nintendo's first party software. I'm interested in the fundamental system concept, and stuff like ZombiU is proving my interest was well founded.