Adafruit has just put their Uzebox based console into production. The Fuzebox is an 8bit game console based around the ATmega644-20PU microcontroller. Full 256 color 240×224 resolution video output is provide by either a composite connection or svideo. There is an SD card slot on board for future expansion. The chip takes care of all the I/O, so you just need to write your game code in C on top of it.
The kit looks easy to assemble. Almost all of the components are through-hole. The video chip is SMD and comes presoldered to the board. The kit has two SNES controller ports included, but you can use NES ports too. There are three ways you can load your program onto the board: 6pin FTDI, ICSP10, and ICSP6.