"I don't think Atari has a lot of nostalgia left to support this."
I've said something very similar elsewhere. Atari's late 70s / early 80s "golden age" IP has been relentlessly exploited, rehashed and resold for nostalgia-oriented purposes since Hasbro bought the brand 20 years ago. We've had endless rereleases of those same games in numerous formats, and there must be a limit to how often people want to have the same part of their childhood sold back to them.
From my point of view, this is just starting to induce deja vu, an apathetic "oh no, yet another attempt to exploit the IP/nostalgia with 'Flashback Mk II/III/IV/V/whatever by Infogrames masquerading as the same "Atari" that produced the originals".
It's also been observed that most of those people have probably indulged that nostalgia to death and are moving on as they grow older anyway. The new nostalgia wave appears to be more late 80s and 90s related.
(And yes, three quarters of the 1990s are now over 20 years ago now. There are people calling the film "Independence Day" a classic and getting nostalgic about it, FFS. Then you realise most of these people are now twentysomethings who saw it in their childhood 20 years ago and still remember it through those eyes- not as the f****** bloated, cornball, stupid, effects-reliant America ra-ra-ra jingoistic toss that it quite obviously always was if you first saw it as an adult).