At Kmart i saw on the catalogue they are selling a new version of an atari flashback the atari flashback 3 selling for 69 bucks with 60 pre-installed games and 2 joysticks. i think the brand is the original atari but not sure. i dont think you can put the original atari carts into the console. but $69 is a pretty good deal. I cant put a good picture of it so you can go on the kmart website and go to page 15 of the kidslivingclothing catalogue to see it. the sale is from 13th october to 19th october 2011.
According to Wikipedia, the Flashback 3 is just emulation on an ARM chip, whereas the Flashback 2 was a single-chip version of the original Atari hardware.
i think they release a flashback every 5-10 years also being seen some before. i think even a few months ago kmart sold a megadrive with preinstalled games and you can put the cartridges in as well for 49 bucks but the company was blaze. though not sure if this is a 3rd party console
The Blaze Megadrives were definitely 3rd party. They did a fairly decent job of running cartridges, although it still wasn't 100% perfect and not every single game worked.