It seems that NX will not look to compete with rivals Xbox Scorpio and PS4 Neo in raw performance terms.
The NX will have entered the design phase before Scorpio or Neo were known entities. However, it's not even known whether it will be able to stand toe-to-toe with existing systems such as the PS4 and Xbox One.
That may be the case, of course, but judging by comments made by Nintendo America boss Reggie Fils-Aime, the NX isn't interested in entering an arms race with its rivals' upcoming hardware.
We're focused on bringing our best entertainment to both the Wii U as well as the NX in the future. So for us, whatever Microsoft and Sony are doing in terms of talking about new systems, that's for them to fight out in that red ocean.”
Not that this is new, of course. Nintendo's systems have been computationally underpowered compared to its rivals for some time, even dating as far back as Game Boy. Fans will point out, however, that while the likes of Game Boy and Wii lacked other systems' horsepower, they bettered their rivals with superior games and functionality.