

One more note to clarify what’s already been said: While the CPU in older consoles can read data and execute instructions directly from the cartridge because it’s connected to the CPU’s memory map like all the other hardware and RAM in the system, most consoles still needed graphics and sound data to be copied into specific areas of onboard RAM, and couldn’t use them straight from the cartridge. This is because those subsystems were hardwired to work only from certain addresses, or even their own, separate RAM.
(I’m aware that the Famicom/NES doesn’t do graphics this way by default, but in terms of hardware design it’s an outlier, and getting into the weeds explaining everything related to that would at least double the length of this comment.)
Because the CPU can read and write that data so fast, however, it’s still orders of magnitude faster than reading from most external media like tapes, floppy disks, and optical discs.

At $250 for 10 games, that works out to $25 per game, which is already less than the usual going rate for physical releases of Atari 2600 homebrew games and licensed repros. That is, games for the system are already selling for more than this at a rate high enough to make it a viable business for some people.
On top of that, those current releases are typically a cartridge, box, and manual, and nothing more. This series of re-releases also come with fabric badges and enamel pins like the ones you could send away for back in the day.
Atari isn’t trying to create a new market for these products. They’re catering to an existing market, but it’s a market of which mainstream gaming circles are mostly unaware.