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Gameduino: an Arduino game adapter
Gameduino shield is based on FPGA. Inner software CPU is running at 50MIPS. It can perform various graphics (backgrounds, sprites) and 32 channel sound effects.
Gameduino connects your Arduino to a VGA monitor and speakers, so anyone who can write an Arduino sketch can create video games. It's packed full of 8-bit game goodness: hundreds of sprites, smooth scrolling, multi-channel stereo sound.
Gameduino is open-source hardware (BSD license) and all its code is GPL licensed.
If you want your own Gameduino, please go to the Gameduino page at Kickstarter and pledge for the first manufacturing run.