Some SD cards seem to be slower than the other, it might take up to 20s to flash a program. If you turn your Gamebuino while a program is being flashed, you'll have a corrupted program in memory, that's why uploading a game using USB solves the problem.
You can also push the C button down, hold it, turn the Gamebuino on,
release the C button, and wait about 10-20s to flash loader.hex. You don't have to hold down the C button, it should just be pushed at the instant when you turn the power switch on.
If you load the loader (located in examples/utilities/loader) using the USB port and then select a game in the list that appears on your Gamebuino's screen, does it work, or does it hang?
PS: each Gamebuino are tested with the micro SD card provided before shipping, so I'm 100% they work fine