Coleco partner Chris Cardillo gave Engadget the following statement, which will also appear on Coleco's Facebook page:
"Retro has decided that the work that they have created is not sufficient to demonstrate at this time. Consequently, we can no longer proceed with the project and the Chameleon project will be terminated. This separation is amicable. We wish Retro luck in the future."
This isn't the only blow RetroVGS has suffered in the past week: On Saturday David Giltinan, the managing editor of RetroVGS's RETRO Magazine, announced his departure from the company. He cited the ongoing issues with the Chameleon as the impetus behind his leaving, saying "I have to separate myself from everything associated with it." Though he conceded poor messaging from RetroVGS, he also asserted that there was "no ill intent or maliciousness on the part of the team."
We've reached out to RetroVGS for comment on the future of the project.
Update: RetroVGS has deleted its Facebook page and its website is unavailable.
Update 2: Todd Shallbetter, COO of Atari, contacted us with the following statement:
"Atari does not have, and never has had an agreement with RetroVGS to release Atari 2600 games on their product."
We've updated our earlier post as well.