Gameduino Project Aims To Game-ify the Arduino
beckman101 writes "Gameduino is a DIY game platform built on a shield for the Arduino. It's open source hardware (BSD and, for the code, GPL). Okay, that's fairly cool. But what makes this project special is that this inexpensive board has hardware that's capable enough to be interesting. The result is a lo-fi game console built on an FPGA that gives you retro graphics without being, you know, too retro. Games actually look good."
Having video output from an arduino would be useful for all sorts of projects, not just games.
Another option for retro-gaming hardware is Andre LaMothe's XGameStation line of DIY kits.
Looks like they now have a "Chameleon" line of kits, in both 8- and 16-bit flavors, which are similar to Arduino or BASIC Stamp systems.
I have not personally used these, but they appear to be pretty cool.
Enjoy.
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Pete