Arduino 16x16 VGA display

I want to use a arduino to show 16x16pixel images for instance mario running, on a VGA display. Is this feasible? are there libraries already written that will allow me to do this? what would the circuit look like? I don't see why I couldn't run the display with just an arduino, unless I run into a CPU or memory bottleneck.

I've seen somewhere a simple video (TV) interface for Arduino, for Arcade style programs. Perhaps it also works with a VGA monitor in monochrome and low resolution.

But for color and higher resolution a faster processor or graphics chip is required. A RasPi with its HDMI output may be a cheaper solution.

A raspberry pi would do a great job at this, was just hoping to do it with a arduino as a challenge. I was doing some googling, and found a way to show color images with an arduino, but don't know if I can adapt it to show animated stuff.