Hey Jason-
Kivy requires an X11 window provider, which is typically the desktop GUI interface (gnome, KDE, etc). To run MC directly from the terminal, you have to create an X11 window manager and mount the Kivy application inside of it.
For my in-machine computers I use fluxbox as my window manager, it's extremely lightweight and easy to setup. I think it's theoretically possible to instantiate an X11 window with Kivy directly in it, but that's outside my knowledge and I've never successfully tinkered my way there.
Since you're only using MC for sound.... there may be a way to open the Kivy instance without a window? I'm not sure if Kivy supports that at all.
If you're still in the development phase of your game, I'd suggest installing a desktop GUI on your Pi and using that as long as you can. When you're finished with the game and ready to start optimizing your boot up, I can try and document what I've done for the flux box autoboot.