Palmer Luckey seeks $1 billion valuation for ModRetro as it gears up to release the M64

Palmer Luckey, the founder of Oculus, who sold his VR startup to Facebook for $2 billionand has since pivoted to run the defense tech juggernaut Anduril, is stepping up his retro-gaming side hustle, ModRetro, which could result in a massive payday for the entrepreneur.

According to Financial Times, Palmer Luckey, who founded ModRetro in 2023, is in early talks to raise $1 billion in funding, a step up from the $19 million the retro handheld company has raised so far.

Coinciding with this development, the company is preparing to launch its second product, a retro gaming console known as the M64, in spring 2026. High-volume production is reportedly underway, as hands-on demos of the console are already appearing at retailers like GameStop in New York.

ModRetro initially garnered widespread attention with its Game Boy-inspired retro handheld, the Chromatic, which flew off store shelves and was praised for its robust, solid design. Now, ModRetro is entering the retro home console market by recreating the Nintendo 64 with modern hardware.

Known as the ModRetro M64, this retro home console features an AMD FPGA chip that runs a tweaked version of the open-source MiSTer N64 core. This means that gamers who already own N64 cartridges can simply plug them in and play games without emulation hiccups or lag. However, the cycle-accuracy of the M64 has yet to be determined at launch in spring 2026.

For now, the M64 promises consumers pixel-perfect accuracy, minimal input lag, and the ability to run Nintendo 64 games at 4K via HDMI. Furthermore, the translucent M64 will remain open for third-party core developers down the line, meaning wider access to a library of arcade games and shmups.

Pricing is where ModRetro’s M64 is targeting the sweet spot. The ModRetro M64 early-bird pricing is locked in at $199 via the waitlist section on the company’s website. However, this deal has now been extended to all initial orders. The price point is interesting, considering it’s identical to the Nintendo 64’s launch price in the U.S. back in 1996.

The console will be available in four translucent colorways: Arctic White, Jungle Green, Grape Purple, and a community-requested Atomic Red model, allowing retro gamers to appreciate the internal hardware. It will come complete with an identical translucent recreation of the three-pronged Nintendo 64 controller.

Apparently, ModRetro’s M64 will undercut Analogue’s retro N64 FPGA alternative, considering it launched at $249.99 for the base model after numerous delays. Amid tariffs, the current MSRP of the standard Analogue 3D is $269.99, while the translucent version, which currently costs $300, is out of stock.

Comparing apples to apples, ModRetro’s M64 is currently giving Analogue a run for its money, as its initial price is $70 lower than the Analogue 3D’s base model and $100 lower than Analogue’s Limited Edition translucent lineup.