Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the widely beloved Sky: Children of the Light, has announced the formation of a new publishing division named Thatgamepublisher. This move places the studio among a growing cohort of successful indie developers who are leveraging their breakout hits to create publishing arms that nurture other independent projects. Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to support games like Clickolding and The Horror at Highrook; Kinetic Games, the team behind Phasmophobia, which introduced Kinetic Publishing with a slate that features Sam Barlow’s latest venture, Precognition; Pocketpair, known for Palworld, which now operates Pocketpair Publishing; and Landfall Games, the studio behind Peak, which has rolled out the Evil Landfall label.
The pattern is clear: when a small studio scores a massive hit, it often finds itself with surplus capital and a desire to stay true to its indie roots while investing in projects it understands. "Successful indie games are usually built on shoestring budgets," explains Jenova Chen, co‑founder of Thatgamecompany. "When one of those games suddenly generates a flood of revenue, the studio faces a choice: either balloon into a large corporation or find a way to allocate the new resources without losing its identity. Investing in other indie developers feels like a natural extension of what we love to do." Thatgamecompany’s own journey illustrates the stakes involved.
The studio’s 2012 release, Journey, nearly bankrupted the company and forced a wave of layoffs, as Chen recounted to GamesIndustry.biz earlier this year. In contrast, Sky: Children of the Light, launched in 2019, has become a global phenomenon—especially in China—and even inspired a feature‑film adaptation. The financial windfall from Sky now enables Thatgamecompany to fund what it terms "emotionally ambitious" games, a niche that aligns with its artistic philosophy.
Chen also notes a shift in how games reach audiences. In the era of Journey, distribution channels were dominated by platform holders like Sony. Today, however, the distribution network is effectively owned by the players themselves, who act as influencers and word‑of‑mouth marketers. A successful indie title can amass millions of fans who become its most potent promotional engine, surpassing traditional media outlets such as GameSpot, IGN, or even Steam.
Another distinctive asset for Thatgamecompany is its demographic reach. Roughly 70% of Sky's player base is female, giving the studio a broader gender balance than many of its peers.
Chen believes this diversity allows Thatgamepublisher to champion games that appeal to both men and women, especially titles that might attract newcomers to the medium. While the publisher has already signed a "couple" of projects, details remain under wraps. In a press release, Chen articulated the publisher’s mission: "When we first began making games, many questioned whether interactive experiences could move players as deeply as film, literature, or music.
Over the years, games have proven they can forge lifelong friendships, heal personal struggles, reconnect loved ones, and restore hope. Thatgamepublisher exists because we believe countless creators worldwide are exploring new emotional frontiers, and we want to help them bring those visions to life." SJ Xue, Thatgamecompany’s vice president of growth and corporate development and the leader of the publishing initiative, elaborated on the type of projects the new label seeks. "We are looking for games that move people through play," Xue told GamesIndustry.biz.
"Genre, platform, or label doesn’t matter. What matters is whether the experience reaches for meaningful emotional territory and uses interactivity to carry the player there." According to Xue, "emotional" can encompass joy, chaos, humor, or melancholy—any feeling that lingers after the console is turned off.
The publisher is therefore open to a wide spectrum of ideas, from early‑stage prototypes to near‑complete builds, and to development teams of any size. While many indie publishers limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to support larger, AA‑level projects, offering flexibility in funding and scope.
The terms of each publishing deal will be tailored to the specific needs of the developer. Xue emphasized that, as former developers themselves, the Thatgamecompany team understands the importance of fair, transparent, and developer‑friendly partnerships. The label plans to provide a full suite of services—including financing, production planning, platform strategy, marketing, community management, and long‑term IP development—rather than a narrow, funding‑only model. This comprehensive approach distinguishes Thatgamepublisher from other indie publishers like Outersloth or Evil Landfall, which often adopt modular, à‑la‑carte service offerings.
Industry observers, such as Luke Keighran of Silver Lining Interactive, have noted that the traditional publishing model is evolving. "The old school publishing model is dead," Keighran said, noting that modern developers prefer to pick and choose the services they need, whether that's marketing support, console porting assistance, or access to capital. Xue confirmed that Thatgamepublisher can adapt its involvement accordingly, offering modular arrangements when appropriate but often favoring integrated partnerships for emotionally driven projects. He argued that a holistic approach—spanning creative development, production, positioning, marketing, community engagement, and platform strategy—helps preserve the emotional core of a game while maximizing its reach.
Ultimately, the publisher’s philosophy centers on the belief that games can forge deep, shared emotional experiences that bring out the best in people. This conviction has guided Thatgamecompany’s own portfolio, from the meditative flow of Flow to the tender narrative of Journey. Chen and Xue assert that the studio’s experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—provides valuable insights into scaling emotionally resonant experiences without diluting their impact. In Xue’s words, "By understanding each game's emotional truth, building from its community, and allowing genuine resonance to create scale over time, we aim to help every project reach farther while staying true to the feeling at its heart." With Thatgamepublisher now operational, the indie landscape gains another champion dedicated to nurturing games that not only entertain but also move players on a profound, lasting level.