For all those electronic buffs out there, here is some interesting project that I found in the internet.
http://belogic.com/uzebox/This is a cool single MCU powered gamming unit which could do a decent video playback as well. The best part is the entire project has only two electronic chips!! Lots of info available in the forums... Oh. BTW, it will not run your XBOX or playstation games just the good old mario kind of games..