With a quad-core ARM Cortex-A7, 256 MB of RAM, and 512 MB of NAND Flash, it is typical of the hardware found in Linux single board computers, like the Raspberry Pi 2. Surprisingly for Nintendo, there does not seem to be any custom components in it, and it looks like it even does run Linux. The GPL license for the kernel and many other open source components is visible in the legal information screen.
They really fucked up. You put a bit more ram, a wifi chip, and a bit more storage what do you get? A really cheap way to to get the Nintendo virtual store in every house that buy this thing.