Well, according to developers, the 3ds's hardware is more powerful than that in the gamecube or wii (in low res, but still)
http://ds.ign.com/articles/109/1094930p1.html
Very interesting for a handheld console.
http://ds.ign.com/articles/109/1094930p1.html
Quote:Japanese company Digital Media Professional (DMP) revealed that it is the company that's providing the graphics processor for the 3DS. The system is using the PICA200 graphics core, a chip designed for use in mobile phones, amusement machines, and game consoles. The architecture uses DMP's proprietary "Maestro Technology" to achieve high quality visuals with minimal power dissipation.
Several developers that have experienced 3DS in its current form have reported, off the record, that it has processing capabilities that exceed the Nintendo Wii, and with 3D shaders they can make games that look close to current generation visuals on the Xbox 360 and PlayStation 3 on the lower resolution screens.
Very interesting for a handheld console.