Arduino has enough power to run simple game systems. Maik’s game system simply proves this. He has built a TV game device run by Arduino UNO/Duemilanove or Diecimila. His thought was not to hard-code just single game but make it more versatile able to run different video games.
Additionally he hacked a Wii Nuchuck controller to able to control games. Video signal is monochrome meaning that images are only black and white, but this is enough to run games like breakout or asteroids. Mike describes building building process thoroughly including: building hardware, generating video signal and writing your first game which is Tron movie like cycle racing game.