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Perfect use for the Pi I have collecting dust (played with it for a few days). Someone should sell a turnkey box to plug your TV into.

There's Picade, a kickstarter project with Integrated screen. They're a late bug give regular news on the project.

However, the linked project should work if you're TV has an HDMI or DVI connection.

Doesn't the Pi have HDMI out?

If you really want to retrogame properly, you need to track down an old-school giant CRT. 32-36" is about right.

Yes