"The Update that you were all anxiously awaiting: Retro VGS [Video Game Systems] has decided that the work that they have created is not sufficient to demonstrate at this time,"reads a post from Coleco on Facebook. "Consequently, we can no longer proceed with the project and the Chameleon project will be terminated. This separation is amicable. We wish them luck in the future. - We thank the gaming community for their continued support, input, vigilance and trust."
The news comes amidst allegations from those at the New York Toy Fair that all was not what it seems, labelling it a "SNES [Super Nintendo Entertainment System] Jr. duct-taped into a Jaguar shell." This was followed up with Retro Video Game Systems, the company behind the Chameleon posting a misleading image of the system's internals.
It was then that Coleco decided to look into it and its association with Retro Video Game Systems. And it's not the only one. David Giltinan, Editor of the company's RETRO Magazine has quit.
"It's not a big shocker to admit that everything going on with the Coleco Chameleon is a major reason why I have to separate myself from everything associated with it," Giltinan's post on LinkedIn reads.
Furthermore, Todd Shallbetter, COO of Atari informed Engadget that the company "does not have, and never has had an agreement with RetroVGS to release Atari 2600 games on their product."
Which should make sense since Mike Kennedy of Retro Video Game Systems did confirm to Gadgets 360 around the New York Toy Fair that the company was still working with Atari for its catalogue.
"We are in negotiation with Atari to bring out some of their classic Atari 2600 games onto Chameleon," wrote Kennedy in an email to us at the time.
At the moment, Retro Video Game System's website appears offline and it has deleted its Facebook page.