However, graphically impressive games won't be the norm for Wii U, says Iwata.
It will be required that a certain number of Wii U games boast impressive visuals - The Legend of Zelda being one such title - but on the whole gamers shouldn't expect the system to compete with whatever Sony and Microsoft has planned.
"As we will showcase the Wii U at E3 in June this year, the detailed announcements must wait until then, but we are aiming to make a system which shall not be forced into competing with the others where the contenders can fight only with massive developer resources and long development times as their weapons," Nintendo president Satoru Iwata told investors last week.
He added: "Looking at the software for home console systems, there are certainly the software titles for which very rich graphics must be reproduced on HD displays and which demand a large number of developers to spend a very long time to develop.
"It is one of the truths that a certain number of such software titles must be prepared, or the consumers will not be satisfied. But we do not think that any and all the software must be created in that fashion."
"It is, in fact, important for us that our games are appealing in other ways as well."
Zelda is one such Wii U game which will be given extra resources.
"Take The Legend of Zelda franchise, for example, the fans must be looking for the graphic representations that they do not see as cheap at all when the title is released for the Wii U. When it is necessary, we do not hesitate to role out our resources."
In other cases, Iwata says third-parties will be utilised to create graphically rich games.
"It is not necessary for us to deploy a huge number of people in order to develop such games."
"When we need massive power and have a lack of internal resources, we collaborate with outside resources and pour necessary resources to where they are needed. We are increasing the frequency of working with outside developers where Mr. Miyamoto and our internal developers alone used to develop."
Wii U will be fully revealed at E3 in June before the system hits stores worldwide at the end of the year.