Yes that's Sonic! So I stopped and took a closer look.
It turns out this was a Coleco portable emulator with 20 SMS and Game Gear Games on it (if you count Snail Maze as a game). It's a bit bigger than a gameboy Micro with a passable color screen.
The thing can be plugged into a TV (as demostrated by Sonic himself) but the emulation is not so great. So you are better off playing on the small crappy screen. The version of Altered Beast is a joke...HORRIBLE. Some of the others were more passable.
Sonic Drift II
Kung Fu Kid
Fantasy Zone The Maze
Sonic Triple Trouble
Alex Kidd in High Tech World
Alex Kidd in Miracle World
Ecco Tides of Time
Anyways it was priced at $49.99 originally. To much money for it. I mean it's not actual SMS technology so you would be better off investing in a Game Gear adaptor. It was on CLEARANCE for 12.99. Thats a price I could bear paying. Fifty bones though? No way, not worth it.
Speaking of game gear, check this out! Game Gear TV adaptor for $.50!!! Holy crap how cool is this??? Very cool. It works alot better than I would have thought possible. To bad it is gonna be outdated soon (Goodbye Analog Signals Hello Digital)...Anyways it has inputs in so I gotta see what I can plug in there. No German pron though (inside joke).