16 bit option for games

255 colors and 2x the screen size

It would make games easier to make.

This has been discussed before… Not viable due to hardware memory limitations

They could make new hardware that can support it and I am NOT talking about hardware.

You have to have hardware support in mind. The display is not limiting the colors, the memory is. Besides, implementing more colors would require a complete overhaul of the internal infrastructure for MakeCode.

Changing your screen size is already possible, using this code:

namespace userconfig {
    export const ARCADE_SCREEN_WIDTH = 320
    export const ARCADE_SCREEN_HEIGHT = 240
}

No it would be a complete overhaul in circuitry and adding a option to switch it to 16 bit.