Yeah, that price tag is kind of bugging me, especially after the NES Classic, SNES Classic, and Playstation Classic were all $100 or less and had more built-in games. The ability to play 7800 and 2600 carts is cool, though.
I think they're going for the Analogue market. Real hardware for real cartridges, built to modern standards (like HDMI).
Two problems:
Analogue consoles are all FPGA. This isn't. It's more like the Hyperkin consoles from that perspective.
I'm not sure how much demand (read: nostalgia) there is for these older consoles these days. At retro game conventions I haven't seen much. It's mostly NES and later.
Atari probably could have won over some of that market if they used an FPGA, but they've gotten this wrong again and again by contracting with companies who put an emulator on a SOC in a box.
And the fate of video games, themselves, was sealed. For the beast had risen once again, and would stop at nothing to ensure the crash, this time, would be permanent.
This seems like it's best for people for still have a ton of Atari 2600 games or are willing to buy them. BecauseTV resolutions weren't standardized yet, playing original cartridges on unmodified original hardware on an HDTV can result in games flickering out due to needing to change the resolution to avoid lag or even games not displaying at all
At $130, I am not willing to take that gamble after their slew of other mediocre systems. Modern Atari has not, and most likely will not go the extra mile. They will just push it out the door, and move on to the next one.