Palmer Luckey’s ModRetro in talks for $1 billion funding

ModRetro, the vintage gaming startup founded by Palmer Luckey, is reportedly in talks to raise a new funding round at a $1 billion valuation, according to the Financial Times. The startup represents a venture focused on retro gaming hardware and software, operating in parallel with Luckey’s work in the defense technology sector.

The company launched its first product, a handheld gaming device called the Chromatic, in 2024. Luckey, who also founded the defense technology company Anduril Industries, has explained that he had been trying to build a Game Boy-inspired device off and on as a hobby for almost seventeen years now. He described the Chromatic as the result of hundreds of irrational decisions, framing the handheld gaming device as an uncompromisingly authentic celebration of everything that made the original console special.

The device has received critical attention, though reviewers have noted the contrast between Luckey’s consumer products and his military technology work. Sean Hollister, a journalist at the technology publication The Verge, wrote that the Chromatic might be the best version of the Game Boy ever made. However, Hollister also highlighted the difficulty of separating the retro gaming product from Luckey’s reputation as the founder of Anduril Industries. In his review of the device, Hollister asked: “If Lockheed Martin made a Game Boy, would you buy one?”

Beyond the Chromatic, ModRetro is reportedly working on other devices, including one designed to replicate the Nintendo 64, according to the Financial Times. The reported funding talks highlight the contrasting scales of Luckey’s active ventures:

• ModRetro is reportedly in talks to raise funding at a $1 billion valuation.
• Anduril Industries is reportedly in talks to raise a new funding round at a $60 billion valuation.

This potential funding round for Anduril Industries comes as the Trump administration appears to have embraced Luckey’s vision for autonomous weapons, highlighting the scale of his defense-related work while he continues to pursue his hobby in retro gaming.

Why it matters

The juxtaposition of a retro gaming startup and a defense technology company highlights the dual-track career of Palmer Luckey, with both ventures currently in talks to raise new funding.