The Atari Flashback consoles already exist for this reason, the last one even had HDMI and upscaling built in as well as the ability to run ROMs from an SD card. You don't need a Ryzen processor to run old Atari games.
I could see the appeal of them maybe designing the VCS as a SteamOS box in a cool woodgrain retro-styled case, even I'd be tempted. Stick an officially-endorsed emulator and ROMs on there and you're well away. But this talk of their own proprietary gaming platform? What developer in their right mind would want to develop games for such a small market?