Palmer Luckey’s retro gaming company ModRetro is in talks to raise new funding at a $1 billion valuation, according to a report from the Financial Times published Sunday. The move would make the startup, which has shipped only one consumer product to date, a unicorn just over a year after its commercial launch.
ModRetro introduced its first device, the Chromatic, in late 2024. The handheld runs an FPGA chip that plays original Game Boy cartridges with pixel-accurate accuracy, and carries a $199 price tag. The Verge called it “perhaps the best version of the Game Boy ever made.” The Chromatic is available through GameStop and the company’s own website, and a limited-edition variant was produced using the same aluminum alloy that Luckey’s defense company, Anduril Industries, uses to manufacture its attack drones.
M64 Is the Next Bet
ModRetro’s next product is the M64, an FPGA-based Nintendo 64 clone that plays original N64 cartridges and upscales output to 1080p or 4K resolution. The console uses an AMD FPGA chip running a modified version of the open-source MiSTer N64 core. It boots in four to five seconds, supports ultra-low latency Bluetooth for wireless controllers, and includes USB-C, HDMI, and microSD slots. The company has confirmed mass production is underway, with a spring 2026 launch window expected.
The M64 will ship in three translucent colorways: Arctic White, Jungle Green, and Grape Purple. A fourth red variant was added following community feedback. Early bird pricing is locked at $199, matching the Nintendo 64’s original U.S. launch price from 1996. Interested buyers can join a waitlist on ModRetro’s website to hold that price.
What Investors Are Betting On
The $1 billion target is a striking ask for a company that has so far brought a single product to market. No revenue figures have been disclosed. However, PitchBook data shows ModRetro had previously raised approximately $19 million before this reported raise, and investor interest appears tied largely to Luckey’s track record as a serial hardware founder.
Luckey co-founded Oculus VR in 2012 and sold it to Facebook for roughly $2 billion in 2014. He later founded Anduril Industries, a defense technology company that has grown into one of the sector’s most closely watched startups, valued at an estimated $8.5 billion. Anduril secured $1.5 billion in 2024 to scale its autonomous weapons manufacturing operations.
For ModRetro, the pitch is that premium retro gaming hardware represents an underserved niche with devoted buyers willing to pay for quality. The Chromatic’s positive reception and the community enthusiasm around the M64’s waitlist suggest there is a customer base. Whether that base justifies a ten-figure valuation on the strength of one shipped product remains an open question for potential investors.
The Retro Gaming Market Context
ModRetro is entering a competitive but growing corner of the games hardware market. Companies like Analogue have built strong followings with FPGA-based recreations of classic consoles, including the Analogue 3D, which also targets the N64 market. The audience for premium retro hardware skews older, nostalgic, and willing to spend: a demographic that aligns well with enthusiast pricing models.
The FPGA approach that ModRetro and Analogue both use is distinct from software emulation. Rather than running games through an interpreter, FPGA hardware replicates the original chip architecture at a transistor level, producing behavior that closely mirrors the original hardware, including subtle timing quirks that software emulators can miss. For collectors and purists, this matters.
Funding Round Not Yet Confirmed
ModRetro has not publicly confirmed the fundraising effort or the terms reported by the Financial Times. The round, if completed at the target valuation, would mark a significant step for the company as it prepares to move beyond its debut product and establish itself as a durable brand in premium retro hardware.
The timing coincides with the M64 entering mass production. A successful launch of the N64 console, combined with fresh capital, would give ModRetro the resources to pursue additional platform expansions and potentially move into adjacent retro hardware categories. The company has not announced any further products beyond the M64.
