Epic Games seems to confirm in this statement about the Wii U's power that new things graphically are possible on the system that current generation hardware does not support. Take a look:
"At the launch event at E3, some of the products that you saw running on Wii U were based on Unreal Engine technology. So that kind of gives you an idea of where we are in that space. You can certainly use our engine on that platform – it's a natural fit from a technology perspective," Capps added. "It opens up some doors that weren't open before on current generation consoles because it is going to be a powerful box. I'm sure [Epic VP] Mark Rein would love anyone who's interested to know how official our support is to get in touch with him!”
From my standpoint it was obvious from day one when I saw those tech demos that the Wii U was going to be doing things technically that were not possible in the same quality on PS3 or Xbox 360. Everyone is so worried about specs, but the dev kits are still not final and most likely the tech demos are only small indicators as to how good graphics can be on the Wii U. When you think of the possibilities, it is easy to see why graphics whores like Mark Rein are so excited about it.....