Thatgamecompany, the creative force behind acclaimed titles such as Flow, Flower, Journey, and the widely celebrated Sky: Children of the Light, has announced the formation of a new publishing division called Thatgamepublisher. This move follows a growing pattern among successful independent studios that, after scoring a breakout hit, expand into publishing or funding to nurture other indie developers. Recent examples include Innersloth, the creators of Among Us, which launched Outersloth in 2024 to back games like Clickolding and The Horror at Highrook; Kinetic Games, the studio behind Phasmophobia, which introduced Kinetic Publishing with a slate that features Precognition from Sam Barlow; Pocketpair, known for Palworld, which started Pocketpair Publishing; and Landfall Games, the team behind Peak, which created the Evil Landfall label.
The trend reflects a desire among small studios to reinvest earnings into projects they understand and appreciate. "This is a very common pattern because number one, successful indie games usually are on a shoestring, and if the game becomes very successful, suddenly you have an overflow of cash," explained Jenova Chen, co‑founder of Thatgamecompany. "But then you are a small team [making] games, you don't want to suddenly become a thousands of people company, right? And then you can't really spend the money, so with additional money, where can you invest?
You want to invest in something you understand, something you really are familiar with. So investing into other indie games is a natural choice for everyone, and that's why many indie companies are doing that." The financial picture was starkly different when Journey launched in 2012.
Chen told GamesIndustry.biz that the project's development nearly bankrupted the studio and forced a mass lay‑off. The situation has dramatically improved thanks to Sky: Children of the Light, released in 2019, which has become a global phenomenon, especially in China, and even inspired a feature‑film adaptation. The revenue generated by Sky now gives Thatgamecompany the capacity to allocate profits toward what Chen calls "emotionally ambitious games." Chen also notes a shift in how games reach players.
In the early 2010s, distribution channels were dominated by platform owners like Sony. Today, however, "the distribution network is owned by the players, who are influencers." A successful indie title can amass millions of dedicated fans who become organic promoters, often out‑reaching traditional media outlets such as GameSpot, IGN, or even Steam. This democratization of distribution empowers indie studios to act as publishers, leveraging their own communities to amplify new releases. Another distinctive advantage for Thatgamecompany lies in its audience demographics.
"We have a much bigger female audience reach than most of the game companies in the world," Chen said, pointing out that roughly 70 % of Sky's player base is female. This gender‑balanced community offers a unique cross‑section of gamers, many of whom are newcomers to the medium. By championing titles that appeal to both men and women, Thatgamepublisher can tap into a broad, emotionally engaged market. While the company has not yet disclosed the specific projects it has signed, Chen shared the publisher's overarching philosophy in a press release: "When we first began making games, many people questioned whether interactive experiences could move players as deeply as film, literature or music.
Over the years, games have shown us what impact they can have on people. Lifelong friendships formed.
Personal struggles healed. Loved ones reconnected. Hope restored. Those moments convinced us that games are capable of touching lives in profound ways.
Thatgamepublisher exists because we believe there are countless creators around the world discovering new emotional frontiers for this medium, 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 types of projects the studio is seeking. "We are looking for titles that move people through play," Xue told GamesIndustry.biz. "The typical genre or platform restrictions would not apply to us.
We are open to teams of any size, projects at any stage, and ideas still being prototyped. What matters is not the label, genre, scale, or format, but whether the game reaches for meaningful emotional territory and uses interactivity to take players there." Xue emphasized that "emotional" can encompass a wide spectrum—joy, chaos, humor, melancholy—as long as the experience lingers after the console is turned off. "If a game is chasing that, we want to have the conversation," he added. Unlike many indie publishers that limit themselves to sub‑million‑dollar budgets, Thatgamepublisher is prepared to fund larger endeavors.
"We are quite flexible when it comes to funding and project scale," Xue said. "We are open to working with everyone from solo developers with immense creativity to larger teams with AA‑level budgets." The terms of each publishing deal will be tailored to the project's needs. Xue explained that, as former developers, the team understands the importance of fair, transparent, and developer‑friendly agreements that still provide the resources necessary to realize a game's full potential. Thatgamepublisher will operate as a full‑service publisher, offering financing, production planning, platform strategy, marketing, community management, and long‑term IP development.
This comprehensive approach contrasts with other indie publishers—such as Outersloth or Evil Landfall—that often adopt a funding‑only model. The industry is moving toward modular publishing, where developers can pick and choose services. Luke Keighran, founder of Silver Lining Interactive, told GamesIndustry.biz that "the old school publishing model is dead" and that modern arrangements focus on flexibility. Xue confirmed that Thatgamepublisher can adapt its support to each developer's specific requirements, whether that means a modular package focused solely on marketing or a more integrated partnership covering creative development, production, positioning, community engagement, and platform strategy.
He argued that emotionally ambitious projects benefit from such holistic involvement because the creative core, marketing narrative, and community outreach are tightly interwoven. The ultimate goal, according to Xue, is to meet each project where it stands and shape the partnership around what will be most useful to the developer.
He highlighted the studio's founding belief that games can forge deep emotional connections and bring out the best in people. "That belief has shaped everything Thatgamecompany has made, from Flow and Flower to Journey and Sky: Children of the Light," he said.
"But we also know this path is bigger than the work of one studio. Around the world, creators are exploring their own ways to expand what games can make people feel, and we want to help those ideas find their way to players." Xue noted that emotionally ambitious games often require a different playbook. The heart of a project may not be evident at the outset; it can emerge through prototypes, iterative design, quiet discoveries, and thoughtful conversations. The publisher's role is to protect that process, providing space, guidance, and alignment so developers can uncover the strongest version of their work.
Drawing on its experience running Sky: Children of the Light—a live‑service title with over 300 million downloads and seven years of global operation—Thatgamepublisher believes it understands how to scale heartfelt experiences without diluting their impact. By grounding each project in its emotional truth, building from its community, and allowing genuine resonance to drive growth, the studio aims to help every partner reach a wider audience while staying true to the feeling at the game's core.