We know he planned to release a game console, and hasn't been lying all along. Just read the recent interview with the original tech guy, or Kevtris' statements about it - Mike really was trying to release a game console, he really did make a business deal to have multiple FPGA cores licensed and written for the Retro VGS, and he was even up front and honest about the tech they were trying to use (a bit too honest - his biggest problem in the early days of the Retro VGS was over-communication, talking about ideas that hadn't been decided upon yet or that were supposed to be secret). Mike Kennedy, a guy who made a magazine about retro games, who runs a site about auctions for classic game console memorabilia, is a dreamer who had a vision of a new retro console that would bring back the days of his youth. He just wasn't a very good business guy, made some pretty big mistakes, didn't listen to people, burnt bridges, and tried to cover up the problems.
Anybody who thinks this all has been nothing but a scam and all lies from the beginning without ever having wanted to release a real product, just hasn't done any research at all and is jumping on the hate bandwagon.