Rumors coming out of France are that Atari has given the green light for an Atari Flashback III console to be released this fall in time for the holiday season.  The system will include about 75 games.  Sources indicate that while previous Flashback consoles came with games for the Atari 2600, 5200 and 7800 this new console will feature games for the Atari Jaguar and Lynx.  Also it might include a few never before seen & unreleased games.  Sources indicate Atari will manufacture about 100,000 consoles for sale worldwide though this seems unlikely considering how few Lynx and Jaguar consoles Atari sold during their original run.  Representatives  of Atari USA had no comment and did not return voicemails or emails.  Atari UK representatives indicated they had a major announcement coming at this summers E3 but did not confirm anything.  "stay tuned more to come"

****UPDATE****UPDATE****

i received an email from a person claiming to work for a developer a couple of hours ago. He claims that the rumors are true but some issues have come up. According to him Toshiba is asking way too much money for providing the jaguar chip set to Atari. The new chipset will be a dual core Tom chip, he says Atari thought it best to go this route since Tom & Jerry share the same Risc core, the extra processors will be dissabled on the second core at boot. Toshiba originally came in with a price but recently almost doubled it and Atari is looking for other suppliers. I asked him why he would have this information and he replied that since the architecture will be slightly different the games are having to be slightly modified to run on the new chipset and his company is working on this. He also says Atari is also planning on releasing up to 5 jaguar games on Xbox Live and PSN before the end of the year and they are working on that as well. they currently have an emulator up and running on both the 360 and PS3 with the 360 version running at 50% speed and the PS3 version @ about 75%. He said the extra SPU's on the PS3 really make a difference specially trying to emulate such a complex system as the Jag but both will be running at 100% before E3 and the plan is to have them running @ 150% before they release any games to be able to add an enhanced mode to the games. No word on what titles they will be either. I will try to see if i can get more info but we might just have to wait until E3.

Ok, I am glad I clicked here.  Are you sure it will be ONLY Jaguar and Lynx games?  I could imagine them being PART of the collection, but not the entire list of games.  It does seem a bit suspect though.  The Jaguar was complicated inside.

Here is a video of 50 Jaguar games:

the lynx games will run off an emulator through the Jag.