It's not a rumor, but it was just emulation improvements for the built-in games. For instance, Galaga Galaxian didn't play correctly until this year and other games had some display tweaks. If those improvements improved non-built-in games, I can't say, since I haven't done the testing.
'Bout to say, they finally ported Galaga to the Atari 2600?! I was about to hunt down one of these units for... oh... nevermind, just Galaxian.
To clear up any confusion, this is new emulation on a new hardware platform. This has true 720p output and looks and sounds the way it's supposed to, along with additional special features, including rewind and save states, which also works on any cartridge you insert. Reviews of all the AtGames products should hit on the 28th once the embargo is lifted. That's also when pre-order details will be revealed.
And to answer the emulation question, it's an original creation by the aforementioned Marat. There is no re-use of others' code. Say what you will about AtGames, but they don't take things without explicit permission.
Say what I want? Ok. When AtGames is not reshelling something for the third year in a row, they come up with great retro products.
I still think the Atari Flashback Portable was genius. Shame they didn't listen what the fans wanted or identified as problems in emulation and release another unit the second year with most of the same problems. That was a pity.
But when AtGames actually does get off their rump after coasting a year here and there, they make good product.