So I'm currently well into a shmup for the Vectrex.
The Vectrex is an 8-bit console released in 1982. It is similar looking to the old Apple Macintosh computers. The built in monitor is a monochrome vector display - Think Asteroids, Gravitar or Battlezone. CPU is an MC6809 running at 1.5 MHZ. 64K ROM, <1K RAM.
Wikipedia:
http://en.wikipedia.org/wiki/Vectrex
Screenshot of game WIP:

http://i62.tinypic.com/mmq1jl.png
Youtube video of game WIP:
https://www.youtube.com/watch?v=rJxmtv8VF3E
If you don't have a Vectrex, several emulators are available including MESS, ParaJVE and VecX.
Due to the nature of the hardware (both the video hardware and the CPU) there are considerable limitations vs more modern consoles or PCs.
Namely:
Vector systems generally do not have video RAM and particularly anything resembling modern graphics cards. Rather, everything must be drawn to the screen in real time. This does have some benefits (no need to worry about un-blitting objects from the screen. They disappear in ~1/40th of a second if you don't redraw them). But this is far outweighed by having to spend a huge amount of your CUP time (as much as 80-90%) just drawing the screen.
This does not leave much time for in-game calculations. Collision detection on mass numbers of objects is potentially crippling (not to mention having to draw them all).
RAM is a bit undersized.
The display is black and white (various levels of brightness are possible). Colour can be provided using overlays (like Space Invaders or Battlezone) but that is obviously very restricted. This makes me very hesitant to do anything resembling pick-ups as it's just not possible to make "things that you want to hit" a contrasting colour with "things that will kill you".
The number of objects onscreen has rather hard limits. Frame rate is entirely under developer control. Standard is 50fps, I'm generally running 40fps as that's about as low as you can go before experiencing visible flicker. This gives you 37,500 cycles per frame to work with. Each object drawn to the screen is about 200-300 cycles for the drawing. However, you have various other overhead (joystick polling, sound, and of course game calcs). You can pretty much expect to run out of cycles. Always. Plus given the RAM restrictions (about 850 bytes) you can quickly get yourself into trouble there.
All that being said, the Vectrex is a really sweet machine to code for. The 6809 has IMO a really nice instruction set. The system is pretty unique for consoles. And it has a really dedicated fan base.
Currently my game engine is capable of about 50 objects onscreen (16 enemy shots, 30 ships, 4 player shots) though that depends on the specifics of the objects (highly detailed sprites take longer to draw than simple ones so a balance must be maintained or the number of sprites on display must be reduced).
There doesn't seem to be an attachment option here, though could be because I'm n00b. If anyone cares I'll find a host and post in .BIN.